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Business suspension, heavy fine for S Korean telco that sold private info of subs
From: David Farber <dave () farber net>
Date: Fri, 1 Aug 2008 07:25:08 -0700

From: dhvanderwoude () gmail com [dhvanderwoude () gmail com] On Behalf Of Dirk van der Woude [dirkvanderwoude () gmail 
Sent: Friday, August 01, 2008 6:47 AM
To: David Farber
Subject: Business suspension, heavy fine for S Korean telco that sold private info of subs


For IP if you wish, perhaps of interest in the ongoing debate
on Phorm, Nebuad etc.

In South-Korea Hanaro apparently sold its subscribers personal details
to telemarketeers. So now their ears are cuffed up to the limit of the law.
It seems that as well the in 2006/7 responsable managers got kicked out.
Maybe because of the summer seazon this news of this vigorous regulator
hardly was pickd up outside Korea.

Hanarotelecom hit with heavy fine, suspension

June 25, 2008

Hanarotelecom, the nation's No.2 broadband operator, was ordered by the Korea Communications Commission not to sign up 
new subscribers to its high-speed broadband Internet for 40 days and to pay a total of 178.8 million won ($172,147) in 
fines for leaking the private information of its subscribers to telemarketing companies. According to industry 
insiders, it is the heaviest penalty ever meted out in the telecom industry.

"There have been a couple of cases in the past where a telecom company was ordered to suspend business, but this is the 
first time two types of fines have been imposed along with a business ban," an official of the KCC said on condition of 
anonymity. Hanarotelecom was fined 148 million won for forcing subscribers to its subsidiary Hanafos.com to join 
Hanarotelecom, and another 30 million won for neglecting its responsibility to protect the private information of its 
subscribers. The business suspension was imposed for Hanarotelecom's misconduct in providing its subscribers' 
confidential information without their consent to telemarketing companies, said the KCC in yesterday's briefing.

In April, the Seoul Metropolitan Police Agency's cyber crimes team said key former officials of Hanarotelecom were 
found to have sold the private information of six million subscribers to telemarketing companies between January 2006 
and December 2007. The KCC said it will look into other telecom companies to find out whether they illegally traded 
customers' personal information.
Hanarotelecom expressed disappointment in an e-mail statement yesterday.

"It's a pity SK Telecom and Hanarotelecom could not release bundled products that will give consumers discounts. We'll 
seek measures to cope with KCC's decision," the statement read. The KCC twice delayed its final decision on 
Hanarotelecom because of divergent opinions among five standing committees. Since SKT, the nation's leading mobile 
phone operator, acquired a controlling stake in Hanarotelecom earlier this year, SKT-Hanarotelecom has emerged as a 
telecom giant with the largest number of subscribers.
Experts in the industry say the suspension of Hanarotelecom's business might affect the nation's entire telecom 
industry and potential customer base. The ruling, they say, hinders SKT-Hanarotelecom from launching diverse bundled 
packages that might offer discounts to consumers amid rising inflation.



Hanaro ordered to pay up
July 07, 2008

Korea's anti-trust commission ordered Hanarotelecom, the country's No. 2 broadband operator, to notify its subscribers 
if their confidential information has been used commercially or not. If victims want to receive compensation, 
Hanarotelecom should pay damages.
The Fair Trade Commission said in a release yesterday that the broadband operator provided information on 510,000 of 
its subscribers to a telemarketing company without subscribers' consent between September 2006 and August 2007. The 
information was given to the telemarketing company in order to recruit new members to a credit card, which was launched 
by a partnership between Hanarotelecom and SC First Bank. Responding to the FTC's order, Hanarotelecom released a 
statement yesterday saying that it did not use subscribers' information by stealth.
"We informed subscribers that their information was going to be used by the bank and the telemarketing company," the 
statement said.
Hanarotelecom also cited the Korea Communications Commission's remarks that Hanarotelecom "was poor at managing its 
subscriber information." The KCC ordered Hanarotelecom to pay fines and correct its malpractice last month. A police 
agency said about 6 million subscribers' information was leaked, but the FTC said only 510,000 people can receive 
compensation under the current law.



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