Newsletter

‘KT’s food’ Koo Koo Mo, “Preparation of compensation plan as soon as possible”… Ahyeon-dong fire level? Reduced telecommunication costs?

85 minutes of communication failure apology… eyes on hand

200,000 to 1.2 million won for fire damage 3 years ago
“According to the terms and conditions, one hour of eating = 7.3 billion won in compensation”
Some say, “Talent recognition… Communication cost + α may come out”

Click to view the original.

▲ Koo Koo, CEO of KT. Seoul Newspaper DB

KT CEO Koo Koo announced that he would make an official apology for the wired and wireless communication failure and prepare compensation.

On the 26th, CEO Koo posted an apology on the website saying, “As CEO, I feel responsible for the inconvenience caused to customers who trust KT and use the service, and I will do my best to prevent recurrence.” did. “We will supplement the process with an in-depth inspection, and use this incident as an opportunity to closely examine the entire wired and wireless network and communication network. We will also come up with a compensation plan as soon as possible.” KT’s wired and wireless internet service across the country had access problems the day before and was restored in 1 hour and 25 minutes.

In an apology, CEO Koo said, “We have confirmed that the cause was a network path setting (routing) error that occurred during the replacement of the latest equipment for service advancement.” At first, KT pointed out the DDoS attack as the cause of the incident, but changed its position to a routing error.

Interest is the compensation plan that KT will offer. In 2018, KT paid compensation of 200,000 to 1.2 million won to self-employed people in the affected area at the time of the fire at the telephone office in Ahyeon-dong, Seoul, and reduced the fee for one month to 1.1 million customers. Although the connection failure time itself was not longer than that of the Ahyeon-dong fire incident, this case is different in that damage occurred nationwide.

According to the current terms and conditions of KT, the standard of compensation for damages is 6 times the hourly rate if mobile phone and high-speed Internet services are not provided for more than 3 consecutive hours. According to a report by Kim Jun-seop, a researcher at KB Securities, it is estimated that it will take about 7.3 billion won to calculate the amount of compensation for one hour of service failure according to the terms and conditions. Some observers are also skeptical about whether additional measures such as an aggressive compensation payment plan or a lump-sum cut in telecommunication costs will be taken as the CEO acknowledged that he was in fact a ‘talent’.

Reporter Ahn Seok sartori@seoul.co.kr