KT faces a double whammy of fines

Dylan Bushell-Embling
telecomasia.net
South Korea's KT has been fined 2.08 billion won ($1.9 million) in an antitrust dispute, and could face another 100 million won fine for a recently-discovered data leak.
 
South Korean antitrust regulator FTC fined the operator for allegedly forcing an unfair contract on an electronics manufacturer, GlobalPost said
 
The dispute arose from a contract between KT and Enspert for the production of 200,000 tablets. KT reportedly ordered an initial run of 30,000 units, but cancelled the remaining orders after initial sales were sluggish.
 
KT allegedly nullified the contract by including a clause voiding the new orders in another contract, and Enspert had no choice to give in to the demand. The KCC held that the operator acted unreasonably, and that Enspert had no responsibility over the cancellation.

KT plans to appeal the decision through lawsuits, claiming that the tablets had critical defects in hardware used in the devices, including GPS hardware.
 
GlobalPost separately reported, citing industry sources, that telecom authorities are considering fining KT up to 100 million ($96,100) won over the prolongued data breach that came to light in March.
 
Hackers allegedly stole compromised KT's website and stole around 12 million pieces of personal data on the operator's subscribers over a sustained one-year period before the breach was discovered.
 
Some pundits have criticised the proposed penalties as too light, but South Korea's telecom law limits the corrective action governments can take over accidental data losses to fines.
 

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