Regarding suspicions that the company covered up and obstructed the investigation into the LG Uplus personal information breach incident that occurred in April of last year, ruling and opposition lawmakers demanded that the company "bear responsibility, including waiving early termination fees for subscribers."
Hong Beom-sik, CEO of LG Uplus, who appeared at the National Audit for the second consecutive year, apologized again for the controversy and responded, "Once a judgment is issued by the judicial institutional investors, we will follow the government's guidance."
On Friday, lawmakers called Hong as a witness during afternoon questioning to press for accountability over suspicions of covering up the hacking incident.
Democratic Party of Korea lawmaker Lee Hoon-gi asked Hong, "If the hacking cover-up under investigation is confirmed, what will you do about early termination fees for number portability?" and inquired, "Will you first (waive early termination fees) like SK Telecom did?"
People Power Party lawmaker Cho Kyung-tae also stated, "If it is confirmed that the hacking fact was intentionally covered up or even the investigation was obstructed, and as a result, anxious users terminate their contracts, where does the fault lie?" Jo (Rep.) said, "Security incidents can occur, but intentionally hiding such facts is an issue of a different magnitude," emphasizing, "If the investigation results confirm intentional cover-up or obstruction of the investigation, substantive measures to remedy user damages, including waiving early termination fees, must be implemented."
Jo (Rep.) also pointed out that LG Uplus recently began automatic updates for customer USIMs, stating, "We must clearly inform customers why they need to replace their USIMs." LG Uplus is proceeding with USIM replacement and updates because the subscriber identification number stored on its USIM has a simple structure unlike other mobile carriers, raising concerns about the possibility of customer information leakage.
Jo (Rep.) said, "We assess that customers' sense of urgency and awareness regarding security measures has significantly declined," adding, "We must provide more specific notice regarding the reasons why new USIMs need to be replaced."
Fellow party member Seo Cheon-ho (Rep.) criticized LG Uplus for promoting its user protection business evaluation results as an excellent case in June of last year, after the hacking incident, stating, "(The suspicion of covering up the incident) is a matter under police investigation following a referral for investigation, and it was also investigated by the Ministry of Science and ICT," adding, "It should have exercised restraint, as this directly relates to corporate morality."
Han Jun-ho, Democratic Party lawmaker and ruling party whip, asked Hong Beom-sik (President), "(Based on the investigation) results, if users are anxious and terminate their contracts, they must pay early termination fees. Is it difficult to give a clear answer regarding waivers, retroactive application, or refunds for that portion?" and inquired, "Can (Hong (President)'s response) be understood as a promise to fulfill obligations regarding damage compensation, etc.?"
Han (Rep.) also questioned Hong Gwan-hee, CISO (Chief Information Security Officer, Senior Executive Vice President) of LG Uplus, asking, "Why did you not report the (server) redundancy to KISA (Korea Internet & Security Agency)?" and pointed out, "You answered that it was fine to reinstall the OS (operating system) because synchronization is done on other servers, but memory information, malicious code, etc., can all be lost."
In response, Hong stated, "We promise to do our best to carry out necessary actions from the perspective of customer protection and user protection once a judgment is issued by judicial authorities," adding, "We will implement customer protection measures."
in TECH
