Telecom operator KT accused of concealing evidence in South Korea’s data breach investigation

South Korea’s Ministry of Science and ICT (MSIT) has referred telecommunications operator KT Corp. to the police, accusing the company of obstructing a government investigation into a major data breach that led to unauthorized mobile payments earlier this year, according to a report by Yonhap News Agency.

In a statement submitted to the National Assembly’s Science, ICT, Broadcasting and Communications Committee, the ministry said it had “determined there was intentional misconduct to obstruct” the official probe. The allegations include submitting false information, concealing evidence, and delaying the submission of key data.

The MSIT stated that KT provided inaccurate details about when its servers were compromised and withheld backup logs for more than two weeks. The company reportedly failed to turn over the records until October 18, hampering the work of the investigation team. Officials said KT’s initial handling of the breach was inadequate and attributed the compromise to poor management of micro base stations, small cellular transmitters used in mobile networks.

The ministry’s referral follows a months-long inquiry into unauthorized mobile payments affecting KT users. The incident, first reported in late August, involved fraudulent transactions totaling about 240 million Korean won ($168,000) in Seoul and nearby regions. Hackers allegedly exploited illegally installed micro base stations to gain access to personal data from hundreds of KT customers.

In response, MSIT established a joint public-private task force in early September to investigate the incident and pledged to release its findings promptly. The ministry emphasized that KT’s lack of cooperation and misleading responses impeded the investigation’s progress.

As part of its next steps, MSIT said it will develop a comprehensive information protection plan to strengthen government investigative powers and clarify the roles and responsibilities of corporate chief information security officers.

KT is South Korea’s second-largest mobile operator, serving 14.9 million subscribers as of the end of September, trailing market leader SK Telecom, which has 23.1 million users, according to data from GSMA Intelligence.