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SK Telecom (SKT) has been directed to waive early termination fees for customers who have cancelled or will cancel their contracts between 19 April and 14 July, following a significant SIM hacking incident. The directive comes as part of the South Korean government’s final determination after a months-long investigation into the breach, which compromised data linked to nearly 27 million subscriber identification numbers (IMSIs). The Ministry of Science and ICT announced on Friday that SKT bore responsibility for the incident, citing operational negligence and failure to uphold its contractual duty to provide secure communication services. In its final report, the Ministry concluded that SKT’s failures constituted a breach of service terms, entitling affected customers to financial relief. Scope of the Breach The breach, which began in August 2021, was only confirmed in April this year. Investigators found that hackers accessed SKT’s core network infrastructure, compromising 9.82 gigabytes of SIM data. This included 25 categories of information such as phone numbers and IMSIs, amounting to approximately 26.96 million records — effectively the entirety of SKT’s subscriber base. An extensive inspection of SKT’s systems revealed 33 malware types, including 27 variants of BPFDoor — a sophisticated remote access tool designed to bypass standard authentication and monitoring protocols. The malware was discovered on 28 servers, an increase from earlier findings which identified 23 malware types on 23 servers. Authorities believe the probability of further immediate damage remains low. Science Ministry Second Vice Minister Ryu Je-myung stated during a briefing that no additional harm, including SIM cloning, has been detected. He also confirmed that no leaks were identified among the 290,000 IMEIs stored within the customer management system during the log-covered period. However, due to missing log data covering two and a half years, the possibility of undetected breaches cannot be fully excluded. Security Failures and Regulatory Breach The investigation found that SKT failed to encrypt critical credentials and authentication keys, including those stored on its core voice authentication server (HSS). Hackers initially gained entry through a misconfigured server on a management network exposed to the internet. This server contained unencrypted credentials, enabling the attackers to access the HSS system directly. These findings highlighted significant lapses in SKT’s security practices. Unlike its domestic competitors KT and LG U+, which encrypt SIM-related data in accordance with GSM Association guidelines, SKT stored sensitive authentication keys in plain text. The government’s report also criticised SKT for its inadequate response to earlier signs of a breach. In February 2022, an abnormal reboot of an infected server was internally addressed without notification to authorities — a clear violation of the Information and Communications Network Act, which from 2024 will mandate breach reporting within 24 hours. Furthermore, SKT’s review of only one of six critical logs during this period resulted in a missed opportunity to detect the infiltration earlier. “Had SKT examined the remaining logs, it could have confirmed that the HSS server had been compromised with BPFDoor malware,” Ryu said. Company Response and Government Oversight In response to the government’s findings, SKT convened an emergency board meeting. Chief Executive Ryu Young-sang confirmed the company would fully comply with the directive and waive early termination charges for affected customers. The Science Ministry has ordered SKT to submit a comprehensive plan to prevent future incidents by the end of July. Authorities will conduct a follow-up review of the implementation measures in November or December. -Korea JoongAng Daily

A substantial stake in AIA Group Ltd, valued at approximately US$3.4 billion (HK$26.8 billion or RM14.4 billion), has been divested by an undisclosed shareholder through a block trade, according to individuals with knowledge of the transaction. This marks one of the largest equity disposals in Hong Kong so far this year. The transaction involved 394.4 million shares, equivalent to a 3.7% holding in the Hong Kong-headquartered insurer. The shares were sold at HK$68 each, reflecting a 6% discount to AIA’s closing price on Thursday. Following the announcement, AIA shares declined by 4.4% during Friday’s trading session. Sources familiar with the matter confirmed the sale was executed by a single party, though they declined to be identified due to the confidential nature of the transaction. AIA Group has not issued any comment in response to out-of-hours enquiries. This represents the fourth-largest equity sale in Hong Kong in 2025, based on Bloomberg-compiled data. The transaction highlights growing activity in the region’s capital markets, with Hong Kong ranking as the world’s second-largest venue for equity offerings during the first half of the year. The placement was managed by Morgan Stanley. -Bloomberg

Singapore’s central bank has imposed financial penalties on nine prominent financial institutions, including Citibank, UBS, and local lender United Overseas Bank (UOB), in connection with the city-state’s largest money laundering case to date. The Monetary Authority of Singapore (MAS) concluded its investigation into these institutions’ dealings with individuals convicted in the S$3.0 billion (US$2.4 billion) case and cited “serious lapses” in anti-money laundering (AML) controls. The MAS investigation followed the 2023 arrests of ten individuals originally from China, who were convicted of laundering illicit proceeds from gambling and online scams through Singapore’s financial system. The scale and nature of the case, which involved high-end properties, luxury vehicles, designer goods, cryptocurrency, and large volumes of cash, have prompted widespread concern over the integrity of the financial hub’s regulatory safeguards. The MAS found that the banks failed in areas such as client risk assessment, transaction monitoring, and escalation of suspicious activities. According to the regulator, eight of the nine penalised institutions did not properly review transactions flagged as suspicious, some of which were unusually large or inconsistent with customer profiles. UOB received the largest penalty at S$5.6 million. The bank acknowledged the MAS’ findings and stated it had implemented corrective measures over the past two years. Credit Suisse’s Singapore branch, which became part of UBS following its collapse in March 2023, was penalised S$5.8 million. UBS AG’s Singapore operations were separately fined S$3.0 million, with the bank committing to continued regulatory cooperation. Citibank NA Singapore and Citibank Singapore Ltd incurred a combined S$2.6 million penalty. Citi reaffirmed its commitment to robust governance and said it had enhanced its client onboarding and monitoring protocols. Switzerland-based Bank Julius Baer’s Singapore branch was also sanctioned with a S$2.4 million fine. The institution stated it had taken “concrete steps” to improve its AML framework. The remaining financial institutions, which were not named in the MAS statement, accounted for the rest of the S$27.45 million in total penalties. In addition to the monetary penalties, MAS has issued prohibition orders ranging from three to six years against four individuals, barring them from working in regulated financial services. Reprimands were also issued to five others. The regulator emphasised that the breaches stemmed from inconsistent application of AML controls, and warned that all institutions operating in Singapore are expected to adhere rigorously to established risk management frameworks to uphold the country’s standing as a trusted financial centre. -AFP

Household spending in Japan rose at its fastest annual pace in almost three years in May, offering tentative signs of a rebound in consumer sentiment despite mounting risks from potential US tariffs that continue to cloud the economic outlook. Official data released by the Ministry of Internal Affairs and Communications on Friday showed consumer spending in the world’s fourth-largest economy increased by 4.7 per cent year-on-year in May. This significantly outpaced the median market forecast of a 1.2 per cent rise and marked the strongest growth since August 2022, when spending climbed by 5.1 per cent. On a seasonally adjusted, month-on-month basis, spending also exceeded expectations, registering a 4.6 per cent gain against an anticipated 0.4 per cent increase. This marked the most robust monthly expansion since March 2021, when spending rose by 6.7 per cent. An official from the internal affairs ministry attributed the better-than-expected performance to one-off drivers such as increased outlays on automotive-related goods and dining out. “The three-month moving average in household spending has been positive since December last year and consumption appears to be recovering,” the official noted. Consumption trends are a critical factor for the Bank of Japan (BOJ) as it assesses the underlying strength of the economy and weighs the timing of further interest rate hikes. Sustained wage growth is seen as a prerequisite to offset the effects of inflation on household purchasing power. According to Rengo, Japan’s largest labour union federation, domestic firms have agreed to an average wage increase of 5.25 per cent this year — the most substantial rise in 34 years. This development has raised hopes that higher incomes could gradually support a more broad-based recovery in consumer activity. “With the yen strengthening and crude oil prices trending lower, it is anticipated that real wages will turn positive year-on-year in the second half of the year as inflationary pressures ease,” said Yutaro Suzuki, an economist at Daiwa Securities. “This should help support a gradual recovery in consumption.” Nevertheless, uncertainties surrounding global trade policy remain a major headwind. US President Donald Trump this week signalled that punitive tariffs on Japanese imports could be increased to between 30 and 35 per cent, significantly higher than the 24 per cent rate announced in April and temporarily suspended until 9 July. This renewed rhetoric has added fresh complications to an already fragile trade environment. Analysts have warned that a sharp deterioration in corporate earnings resulting from higher tariffs could weigh on upcoming winter bonuses and influence the outcome of spring wage negotiations in 2026. “If corporate earnings are significantly squeezed due to the US tariffs, this could have a negative impact on wage momentum,” said Masato Koike, senior economist at Sompo Institute Plus. Japanese consumers, meanwhile, remain selective in their spending habits. The ministry reported an 8.2 per cent year-on-year decline in rice purchases in May, as households continued to cut back on items that have experienced notable price increases. Despite the promising data on household spending, policymakers remain cautious, with global trade tensions and monetary normalisation efforts by the BOJ presenting key risks to Japan’s economic recovery trajectory. -Reuters

AirAsia is in advanced discussions with Airbus to convert part of its existing narrow-body aircraft orders into long-range A321XLR jets, according to two industry sources. The move comes as the low-cost airline positions itself for recovery following a period of financial restructuring. Tan Sri Tony Fernandes, Chief Executive Officer of Capital A Group—the parent company of AirAsia—previously told Reuters that negotiations were under way to acquire between 50 and 70 of the long-range A321XLR models. While Fernandes expressed strong interest in sealing a deal within one to three months, he underscored that completing the company’s ongoing financial reorganisation remained the immediate priority. Sources indicate that a potential agreement could materialise as early as this week, coinciding with Malaysian Prime Minister Datuk Seri Anwar Ibrahim’s official visit to Paris. However, a third source noted that no final agreement has been confirmed at this stage. AirAsia, headquartered in Malaysia, is among the largest low-cost carriers in Asia and one of Airbus’ most significant customers, with more than 350 aircraft currently on order. In response to the severe downturn in aviation during the COVID-19 pandemic, the airline has been methodically restructuring its order book to align with revised operational and financial strategies. The proposed shift to the A321XLR would not necessarily increase the total volume of AirAsia’s aircraft orders with Airbus but would support the manufacturer’s longest-range narrow-body offering. Discussions around a potential large-scale order of Airbus’ smaller A220 aircraft have been deprioritised for the time being, according to the sources. Fernandes has articulated a vision to expand AirAsia’s global footprint, identifying long-range aircraft as a critical component of that ambition. This week, he disclosed that AirAsia is actively exploring the establishment of a Gulf-based hub, with ongoing negotiations in four locations including Saudi Arabia and Ras Al Khaimah in the United Arab Emirates, as he told Dubai Eye radio. Bloomberg News also reported on Thursday that a potential aircraft order announcement could coincide with the Prime Minister’s Paris visit, though again, it stressed that a deal is not guaranteed. Neither Airbus nor AirAsia have provided official comment in response to these developments. -Reuters

Nippon Steel has announced it will raise ¥800 billion (approximately $5.6 billion) through two subordinated loans to partially fund its $14.9 billion acquisition of U.S. Steel and to refinance existing liabilities. The Tokyo-based steelmaker, Japan’s largest, will allocate ¥500 billion of the new capital towards repaying a portion of the ¥2 trillion bridge loan arranged in June to finance the landmark deal. An additional ¥300 billion will be used to refinance a previous subordinated loan of ¥450 billion. According to a Nippon Steel spokesperson, the ¥500 billion loan will be underwritten by Japan’s three megabanks—Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group—alongside Sumitomo Mitsui Trust Group and the Development Bank of Japan. Completion is targeted by 18 September. The ¥300 billion refinancing tranche, scheduled for 22 July, will be provided by the three megabanks and Sumitomo Mitsui Trust. The company said the remaining ¥1.5 trillion of the bridge loan will be refinanced through a mix of funding approaches, depending on interest rates, prevailing market conditions and strategic assessments. While capital-based financing remains a possibility, Nippon Steel stated that any such move would be weighed carefully to avoid earnings-per-share dilution. Following the acquisition, Nippon Steel’s debt-to-equity ratio increased from 0.35 as of 31 March to approximately 0.8, reflecting the impact of the bridge loans and the sale of its stake in a U.S. joint venture with ArcelorMittal. The divestiture was a strategic decision to facilitate regulatory approval for the U.S. Steel transaction. The company intends to reduce its debt-to-equity ratio to the 0.7 range by the end of March 2026 through internal cash flow generation and selected asset sales. -Reuters