Journalist

Na Seon Hye
  • KT fined for failing to properly inform customers over phone pre-orders
    KT fined for failing to properly inform customers over phone pre-orders SEOUL, May 8 (AJP) - Telecom provider KT was fined 640 million won (about US$460,000) for failing to properly inform customers about available benefits and subscription-related terms when accepting pre-orders for Samsung's handsets in January last year, the Korea Media and Communications Commission said on Friday. After a meeting at the government complex in Gwacheon in Gyeonggi Province, the communications watchdog decided to impose the fine along with corrective orders, citing damage to customers' rights and harm to their interests. The punitive measures came more than a year after the commission launched its investigation in February last year. It found that KT had misled customers by telling them benefits were available to all when accepting pre-orders for Samsung's flagship Galaxy S25, although they were limited to the first 1,000 customers. KT blamed the incident on a clerical error by staff. But the commission also found that KT had unilaterally canceled some 7,127 pre-orders placed through certain online platforms for some reason. The commission ordered KT to clearly inform customers of all terms and conditions including pre-order details, and to make the process more transparent. "There were shortcomings in our pre-order process at the time, but all related procedures have since been improved," a KT staffer said. "We will continue to closely monitor for any false or exaggerated ads and promotions to minimize inconvenience for customers using mobile services," the commission's chairman Kim Jong-cheol pledged. 2026-05-08 17:08:14
  • AI Can Identify Vulnerabilities in 10 Minutes, South Koreas Ministry of Science Says
    AI Can Identify Vulnerabilities in 10 Minutes, South Korea's Ministry of Science Says The Ministry of Science and ICT is examining the need for developing security-focused AI models to counter evolving AI-based cyber threats. During a briefing on May 8 in Gwanghwamun, Seoul, Choi Woo-hyuk, head of the Cybersecurity Policy Division, stated, "There was a consensus that the current information security system is insufficient to address threats based on AI models. We discussed the necessity of a dedicated AI model specialized in cybersecurity." Earlier that day, the ministry held a meeting with experts from academia and industry to discuss responses to global AI companies' cybersecurity projects. Participants included firms involved in developing independent AI foundation models, such as SK Telecom, Upstage, and Motif Technologies, as well as key AI companies, the president of the Korean Society for Information Security, and chief information security officers (CISOs) from major corporations. The ministry's position is to enhance the performance of currently available security-focused models in the short term while considering the establishment of a security response system based on independent AI models in the medium to long term. Choi noted, "There was a consensus on utilizing independent AI models to create a security-focused AI system. We are not at the stage of finalizing a plan but are in the process of discussing its necessity." He added that a new direction for the information security paradigm will be explained between late May and early June. The meeting also showcased a demonstration of AI-based penetration testing. The ministry and the Korea Internet & Security Agency (KISA) used Anthropic's Opus model to identify vulnerabilities in specific corporate services, leading to account theft and unauthorized access. Choi explained, "There was a case where AI found a way to generate a new password without knowing the existing one. We confirmed the process of AI identifying vulnerabilities and accessing services after securing accounts." According to the ministry and KISA, the test revealed a total of seven vulnerabilities. Notably, AI was able to perform what would typically take professional hackers several days in just about ten minutes. Choi remarked, "AI identified vulnerabilities that would take professional hackers days to find manually in a short time. While it is currently not at a level that general users can easily utilize, the speed of attacks could increase as professional hackers become more adept at using prompts." Meanwhile, on May 11, Deputy Minister Ryu Je-myung is scheduled to meet with representatives from Anthropic to discuss strategies for addressing AI-based cybersecurity threats. Choi stated, "The need for a response related to Mitos has been raised, prompting the government to request cooperation in advance."* This article has been translated by AI. 2026-05-08 16:23:28
  • Koreas Broadcasting and Communications Commission Fines KT 640 Million Won Over Galaxy S25 Pre-Order Issues
    Korea's Broadcasting and Communications Commission Fines KT 640 Million Won Over Galaxy S25 Pre-Order Issues The Broadcasting and Communications Commission (BCC) has imposed a fine of 640 million won on KT for misleading users during the pre-order process of the Galaxy S25 and for restricting some subscriptions. On May 8, during its seventh meeting of 2026 held at the Government Complex in Gwacheon, the BCC announced that it had decided to impose the fine along with a corrective order for violations of the Telecommunications Business Act by KT. The BCC determined that KT infringed on user rights by providing misleading information about additional benefits and subscription conditions during the Galaxy S25 pre-order process. An investigation into the matter has been ongoing since February of last year. The investigation revealed that while conducting a pre-order event for the Galaxy S25 on its official online store, KT.com, the company stated that "benefits could be provided unless otherwise indicated." However, it was found that some benefits were limited to the first 1,000 customers. KT explained that the omission was due to a simple mistake by an employee. KT was also found to have unilaterally canceled contracts for 7,127 users who pre-ordered through the YouTube channel 'Orait Studio' and the Genie TV channel (6,192 from YouTube and 935 from Genie TV). The BCC concluded that KT unjustly restricted subscriptions despite these users having completed the service agreement procedures, including identity verification and payment method input. The BCC identified the following violations under the Telecommunications Business Act: misleading users about important matters such as the limit on the number of pre-orders and restricting subscriptions for users who completed the contract process. The commission also issued a corrective order requiring KT to clearly disclose additional benefits and conditions during the pre-order process for users. A KT representative stated, "There were some deficiencies in the notifications during the operation at that time, and we have improved the related procedures." Kim Jong-cheol, chairman of the BCC, emphasized the need for thorough inspections of misleading or omitted information regarding important matters in mobile service subscriptions, stating, "We will continuously monitor the implementation of this measure to ensure that the public does not face any inconveniences." Meanwhile, Shin Seung-han, the BCC's market research and review officer, explained during a briefing after the commission meeting that KT's violations occurred in February of last year, followed by a review and investigation process that continued until recently, leading to the final corrective action approved by the commission. Regarding the background of KT's unilateral contract cancellations for users who pre-ordered through the YouTube channel Orait Studio and Genie TV, he stated, "KT claimed that they had planned to limit the benefits to the first 1,000 customers, and the omission was due to a simple mistake by staff. However, upon verifying the facts, it was found that the actual number of benefits provided exceeded 1,000." He added, "The BCC confirmed a total of 7,127 cases of unilateral cancellations and made its judgment based on the final confirmed cancellation numbers."* This article has been translated by AI. 2026-05-08 15:49:08
  • OpenAI Added to List of Companies Required to Disclose Information Security Practices
    OpenAI Added to List of Companies Required to Disclose Information Security Practices OpenAI has been newly included in the list of companies required to disclose information security practices due to a surge in domestic users. Platforms such as AliExpress, Musinsa, Tving, and CJ Olive Young, which have rapidly expanded their user bases in South Korea, are also on the list. On May 8, the Ministry of Science and ICT announced the 693 companies that are obligated to disclose their information security practices for 2026. This requirement, established under the Information Protection Industry Promotion Act, aims to encourage corporate investment in information security and enhance user protection by mandating disclosures regarding security investments, dedicated personnel, and related activities. Companies are selected annually based on criteria such as business sector, revenue, and user numbers. This year, the number of obligated companies increased by 27 compared to the previous year, totaling 693. Notably, 13 companies were added based on revenue criteria, and 10 companies met the requirement of having over one million users. The new additions include OpenAI, AliExpress, Musinsa, Tving, and CJ Olive Young. The inclusion of OpenAI is attributed to the rapid increase in domestic users of its generative AI services. According to Mobile Index, the number of ChatGPT users in South Korea surged by 341% from January to December last year, with active devices totaling 19.49 million. ChatGPT was also the most installed app on smartphones in South Korea last year, with 16.57 million installations. Companies required to disclose their information security practices must submit their security status to the comprehensive disclosure portal by June 30. Lim Jeong-kyu, Director of Information Security Network Policy at the Ministry of Science and ICT, stated, "The information security disclosure system is an important framework that allows the public to verify companies' information security status through transparent disclosures. We will continue to promote the right to know for the public and encourage voluntary investments in information security by companies, striving to enhance the overall level of information security in the country." 2026-05-08 12:35:17
  • SK Telecom Recovers 500 Billion Won Operating Profit; LG Uplus Continues Growth Amid Hacking Concerns
    SK Telecom Recovers 500 Billion Won Operating Profit; LG Uplus Continues Growth Amid Hacking Concerns The three major telecom companies in South Korea—SK Telecom, KT, and LG Uplus—released their Q1 2026 results, with SK Telecom recovering to an operating profit of 500 billion won, moving past the fallout from last year's USIM hacking incident. LG Uplus was the only company to report increases in both revenue and operating profit, demonstrating stable growth. According to SK Telecom, its consolidated revenue for Q1 reached 4.39 trillion won, with an operating profit of 537.6 billion won. Although revenue decreased by 1.4% and operating profit by 5.3% compared to the previous year, the recovery of operating profit above 500 billion won raised expectations for improved performance in the second half of the year. The wireless segment reported a 3% decline in revenue to 2.58 trillion won. However, the proportion of 5G subscribers grew to 81% of total handset subscribers, maintaining a market share of 45.7%. In the wired segment, revenue increased by 2.2% year-over-year to 295.4 billion won, driven by a rise in high-speed internet subscribers and an increase in gigabit internet users. Conversely, revenue from paid broadcasting fell by 1.3% to 471.9 billion won, and enterprise revenue decreased by 1.7% to 274.7 billion won. LG Uplus reported growth in both revenue and operating profit for Q1, with consolidated revenue of 3.80 trillion won, up 1.5%, and operating profit of 272.3 billion won, up 6.6% year-over-year. The mobile segment's total revenue reached 1.65 trillion won, a 3.2% increase from the previous year, attributed to an increase in subscriber lines and enhanced competitiveness in core telecom operations. The total mobile subscriber lines grew by 6.4% year-over-year to approximately 39.03 million. Mobile network operator (MNO) lines increased by 7.1% to about 21.97 million, while mobile virtual network operator (MVNO) lines rose by 4.7% to about 8.96 million. Revenue from the smart form segment, which includes IPTV and internet services, rose by 4.1% year-over-year to 656.3 billion won. IPTV revenue increased by 1.5% to 335.1 billion won, while internet revenue grew by 7.9% to 320 billion won. Both companies' performance was bolstered by their AI businesses. SK Telecom's AI revenue nearly doubled compared to its sluggish telecom segment, with AIDC revenue soaring by 89.3% year-over-year to 131.4 billion won, driven by increased data center utilization and GPU as a Service (GPUaaS) sales. LG Uplus also experienced growth in its AIDC business, with revenue increasing by 31% year-over-year to 114.4 billion won. An Hyung-kyun, head of the Enterprise AI Business Group, stated during the Q1 earnings call that the revenue from contracts secured last year is now being reflected, and he expects continued high growth. He added that the company plans to strategically expand its business in line with market conditions while reliably executing existing projects. KT is set to announce its Q1 results on the 12th. Analysts predict KT's consolidated revenue for the quarter will be around 6.8 trillion to 6.9 trillion won, with operating profit expected between 480 billion and 520 billion won. The market anticipates that the impact of last year's femtocell hacking incident, increased security investments, customer compensation policies, and one-time gains from real estate sales will affect its performance.* This article has been translated by AI. 2026-05-08 07:21:26
  • LG HelloVision Reports 1st Quarter Operating Profit of 5.1 Billion Won, Down 28.4% Year-on-Year
    LG HelloVision Reports 1st Quarter Operating Profit of 5.1 Billion Won, Down 28.4% Year-on-Year LG HelloVision reported declines in both revenue and operating profit for the first quarter of this year, impacted by a stagnant pay TV market and a reduction in its educational smart device business. However, the company achieved a return to profitability compared to the previous quarter due to the resolution of one-time costs related to voluntary retirements. In a preliminary earnings report released on May 7, LG HelloVision announced consolidated revenue of 255.4 billion won, operating profit of 5.1 billion won, and net profit of 3 billion won for the first quarter. Revenue fell by 18.5% and operating profit decreased by 28.4% compared to the same period last year. The revenue decline reflects the contraction in the educational smart device sector and a slowdown in the pay TV industry. Adjustments to the portfolio as part of a focused strategy in regional businesses also contributed to the drop. Operating profit improved by 13 billion won from the previous quarter, marking a return to profitability. This was largely due to the elimination of one-time costs associated with voluntary retirements recorded in the fourth quarter of last year. By business segment, broadcasting revenue was 120.2 billion won, internet revenue was 33.8 billion won, and mobile virtual network operator (MVNO) revenue was 36.8 billion won. The rental business generated 40.9 billion won, while regional businesses, including media and B2B transactions, accounted for 22.5 billion won. Broadcasting and MVNO revenues fell by 2.1% and 5.4%, respectively, year-on-year. The broadcasting segment saw slight declines due to reduced video-on-demand (VOD) sales, although targeted products like technology-neutral offerings and student-specific plans helped maintain subscriber competitiveness. The MVNO segment faced revenue drops due to intensified competition among telecom companies offering low-cost plans. Conversely, the rental segment experienced a 27.2% increase in revenue to 40.9 billion won, driven by rising demand for popular products among younger consumers, such as robot vacuums and LG's StandbyME. Regional businesses recorded a revenue decline of 45.3% to 22.5 billion won due to portfolio adjustments. Kim Young-jun, CFO and CRO of LG HelloVision, stated, "Despite stagnation in the pay TV market, we focused on operational efficiency and business stabilization. We aim to secure a sustainable growth foundation through improved profitability and solid operations." Last year, LG HelloVision reported consolidated revenue of 1.2657 trillion won and operating profit of 18.7 billion won, marking increases of 5.8% and 39.0%, respectively. However, in the fourth quarter, the company recorded revenue of 299.5 billion won and an operating loss of 7.9 billion won, attributed to one-time costs related to voluntary retirements.* This article has been translated by AI. 2026-05-07 21:58:50
  • SK Telecom Shifts Focus to High-Value Subscribers to Regain Market Share
    SK Telecom Shifts Focus to High-Value Subscribers to Regain Market Share SK Telecom (SKT) announced its strategy to focus on acquiring high-value subscribers to recover market share. On May 7, Baek Byung-chan, head of SKT's Mobile Network Operations, stated during a first-quarter earnings conference call, "We will avoid the wasteful competition of simply increasing subscriber numbers and instead concentrate on securing high-LTV subscribers to balance profitability and market share." He added that the company plans to enhance its sales channel competitiveness and implement new target segmentation to drive natural market share growth. According to SKT, the company started the year with approximately 980,000 fewer subscribers compared to the previous year but recorded a net gain of 208,000 subscribers in the first quarter. SKT also expressed its commitment to improving annual performance. Chief Financial Officer Park Jong-seok noted, "We are seeing a recovery in customer trust and a transition to net subscriber growth in the telecommunications sector," emphasizing the use of artificial intelligence (AI) to enhance efficiency and reduce costs in internal operations, including call centers. He stated that expanding the AI Data Center (AIDC) business would help elevate annual performance beyond previous levels. In the first quarter, SKT reported consolidated revenue of 4.3923 trillion won and operating profit of 537.6 billion won, marking a 1.4% decrease in revenue and a 5.3% decline in operating profit compared to the same period last year.* This article has been translated by AI. 2026-05-07 21:53:43
  • Tving Posts 19.2 Billion Won Q1 Operating Loss, Narrowing Deficit by 6.5 Billion Won
    Tving Posts 19.2 Billion Won Q1 Operating Loss, Narrowing Deficit by 6.5 Billion Won Online video service Tving posted an operating loss of 19.2 billion won in the first quarter, narrowing its deficit and raising expectations for improved profitability after extending its content amortization period. CJ ENM said on May 7 during its 2026 first-quarter earnings conference call that Tving recorded a 19.2 billion won operating loss for the quarter. That compared with a 25.7 billion won operating loss a year earlier, reducing the loss by 6.5 billion won. A CJ ENM official said the company changed Tving’s amortization method for content rights from two years to four years. The official said the previous system was designed around broadcast-centered distribution cycles, but the shift to an OTT-driven market led the company to adjust content useful lives to better reflect reality. The official added that the change was made to align with amortization practices used by global OTT operators. CJ ENM said it will expand content investment this year centered on Studio Dragon while also improving cost efficiency by managing production costs per episode. A company official said domestic new-content investment had been somewhat stagnant, but investment will increase this year led by Studio Dragon. The official said CJ ENM plans to systematically manage per-episode production costs to limit the overall pace of cost increases. On a supply gap involving Fifth Season, CJ ENM said it was temporary. The company said it is discussing series supply with multiple platforms, and that Fifth Season posted first-quarter revenue of 233.6 billion won and an operating loss of 2.9 billion won, with the loss improving by 14.5 billion won from a year earlier. CJ ENM also reported on a consolidated basis first-quarter 2026 revenue of 1.3297 trillion won and operating profit of 1.5 billion won. That was up 16.8% and 107.2%, respectively, from a year earlier. Revenue in the entertainment division rose 22.6% to 951.1 billion won. The division remained in the red with an operating loss of 19.0 billion won, though the loss narrowed by 7.2 billion won from a year earlier. The commerce division extended revenue growth but saw weaker profitability. First-quarter revenue rose 4.5% to 378.5 billion won, while operating profit fell 7.6% to 23.9 billion won.* This article has been translated by AI. 2026-05-07 15:51:20
  • CJ ENM Q1 Operating Profit Rises 107% to 1.5 Billion Won on Film, Drama Rebound
    CJ ENM Q1 Operating Profit Rises 107% to 1.5 Billion Won on Film, Drama Rebound CJ ENM said growth at streaming platform TVING and stronger overseas content sales lifted first-quarter revenue in 2026, though profitability was mixed as the TV advertising market weakened and music investment increased. The company said May 7 that, on a consolidated basis, it posted first-quarter revenue of 13.297 trillion won and operating profit of 1.5 billion won. That was up 16.8% and 107.2%, respectively, from a year earlier. The entertainment division reported revenue of 9.511 trillion won, up 22.6%. It remained in the red with an operating loss of 19.0 billion won, but the loss narrowed by 7.2 billion won from a year earlier. The media platform division posted revenue of 3.268 trillion won, up 11.6% on TVING’s growth, but recorded an operating loss of 21.2 billion won as TV advertising revenue fell amid an economic slowdown. Results improved sharply in film and drama. Revenue rose 44.8% to 4.573 trillion won, and operating profit was 8.0 billion won, swinging to a profit. CJ ENM attributed the gains to expanded supply of global series including “American Classic,” “The Good Daughter” and “East of Eden,” which it said improved both sales and profitability. The music division posted revenue of 1.670 trillion won, down 0.1%. It recorded an operating loss of 5.8 billion won, citing fewer large events by label artists including at Lapone Entertainment and increased infrastructure investment for Mnet Plus. The commerce division extended revenue growth but saw weaker profitability. Revenue rose 4.5% to 3.785 trillion won, while operating profit fell 7.6% to 23.9 billion won. CJ ENM said it expanded intellectual property-based content commerce and strengthened short-form social media marketing to boost mobile competitiveness. It said mobile live commerce transaction volume jumped 137% from a year earlier, while app downloads and monthly active users each rose 11.8% on increased mobile investment. Subsidiary Studio Dragon reported first-quarter revenue of 155.3 billion won, up 16%, and operating profit of 6.4 billion won, up 50.1%. The company said broader TV scheduling, including terrestrial channels, and increased supply of global OTT originals supported growth. CJ ENM said it plans from the second quarter to focus on strengthening local platform partnerships and building a base for overseas co-productions; boosting integrated advertising competitiveness around anchor IP; expanding its artist lineup and improving concert-based earnings; and widening its commerce IP universe while strengthening premium product competitiveness. A CJ ENM official said, “We continued top-line growth in the first quarter on steady increases in TVING subscribers and advertising revenue and strong overseas content sales,” adding, “In the second quarter, we will focus on restoring profitability by improving business fundamentals by division and strengthening platform competitiveness.”* This article has been translated by AI. 2026-05-07 14:32:16
  • LG Uplus Q1 Operating Profit Rises 6.6% to 272.3 Billion Won on Subscriber Growth
    LG Uplus Q1 Operating Profit Rises 6.6% to 272.3 Billion Won on Subscriber Growth LG Uplus said revenue and operating profit rose in the first quarter, helped by subscriber growth and gains in its corporate infrastructure business. On May 7, the company reported first-quarter 2026 consolidated revenue of 3.8037 trillion won, up 1.5% from a year earlier. Service revenue rose 3.3% to 3.0370 trillion won, while handset revenue fell 5.2% to 766.9 billion won. Operating profit increased 6.6% to 272.3 billion won. Mobile revenue climbed 3.2% to 1.6526 trillion won on higher subscriber lines and stronger core telecom competitiveness. Mobile service revenue, excluding interconnection revenue, rose 3.7% to 1.5878 trillion won. Total mobile subscriber lines grew 6.4% from a year earlier to about 30.931 million, with a net increase of 220,000 lines during the quarter. MNO lines rose 7.1% to about 21.967 million, and MVNO lines increased 4.7% to about 8.964 million. 5G handset subscribers rose 11.0% to 9.473 million, lifting 5G penetration among handset subscribers to 84.2%. MNO service ARPU, excluding IoT and MVNO lines, edged up 0.3% to 35,646 won. Smart home revenue, which includes IPTV and internet, increased 4.1% to 656.3 billion won, supported by growth in gigabit internet subscribers. Internet revenue rose 7.9% to 320.0 billion won, and internet subscribers posted a net gain of 62,000 in the quarter to 5.64 million, up 4.5% from a year earlier. IPTV revenue increased 1.5% to 335.1 billion won, and IPTV subscribers rose 2.8% to 5.767 million. Corporate infrastructure revenue grew 6.3% to 435.6 billion won. AIDC revenue jumped 31.0% to 114.4 billion won on expanded colocation and DBO sales. Solution revenue slipped 0.8% to 117.9 billion won, and corporate line revenue fell 0.1% to 203.3 billion won. Voice revenue rose 1.1% to 84.5 billion won. Internet phone revenue fell 1.1% to 40.9 billion won, while corporate and international voice revenue increased 3.2% to 43.6 billion won. "LG Uplus aims to build a stable profit structure by making stronger profitability in its core telecom business a key task and systematically securing competitiveness in its AX business," said CFO and CRO Yeo Myeong-hee. "We will consistently pursue this strategic direction to accelerate mid- to long-term growth and continue to enhance corporate value," she said. LG Uplus said it will not pay a first-quarter dividend. The company said it will maintain its current dividend policy of paying twice a year, with interim and year-end dividends, instead of quarterly dividends. 2026-05-07 10:27:07