Tving anticipates a significant financial burden from customer compensation related to a data breach, which is expected to last until the end of the year. The compensation package is valued at approximately 20,000 won per person, but the total cost remains uncertain due to the number of affected individuals and the application rate.
During a briefing on the data breach held on September 3 at the Koreana Hotel in Gwanghwamun, Jang Hyun-kyung, head of Tving's business management division, stated, "We expect there will be a financial burden in implementing the compensation package, and it will have an impact this year." He added, "It is difficult to predict how many users will apply, so we cannot specify the exact financial burden."
On the same day, Tving announced its customer compensation package, which includes: △ Cyber insurance for hacking and phishing incidents △ Premium viewing environment upgrades △ Tving points △ Entertainment coupons. Jang noted, "We structured it to provide a consumer-perceived value of about 20,000 won per person."
Tving also plans to increase its investment in information security. According to the company, its investment in information security last year was approximately 2.5 billion won. Tving aims to expand its annual investment in information security to a maximum of 10 billion won by 2030.
The company will also increase its dedicated information security personnel, adding up to 16 external staff by the end of this year. Ko Min-seok, vice president in charge of human resources, stated, "We plan to further expand internal and external personnel considering future investment scale and organizational restructuring."
CEO Choi Joo-hee added, "We will subdivide the information security team into four groups and calculate the necessary personnel size for additional hiring."
Meanwhile, Tving stated that the compensation plan considers factors such as a safety net for customers, improved viewing environments, and benefits that customers can choose and experience directly.
The cyber insurance will be provided for one year, covering up to 3 million won per person for damages from cyber financial fraud due to hacking and phishing, as well as scams from online shopping malls and personal transactions. Tving explained, "While the insurance is not a direct monetary compensation for the data breach, we believe it can help alleviate customer anxiety about potential future damages."
The viewing environment will also be upgraded. Subscribers will receive a premium viewing environment until the end of the year without needing to apply separately. Additionally, Tving will provide 5,000 won in Tving points, which can be used for purchasing individual content like the latest movies.
Customers will also receive a one-month subscription to Wave's ad-supported video-on-demand (AVOD) service (5,500 won) or a 5,000 won discount coupon for a CGV combo. Compensation applications will be available from September 7 to 30 through the Tving app and website, with compensation set to take effect on October 6.
* This article has been translated by AI.
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