SK Telecom has not accepted a mediation proposal by the Korea Consumer Agency's Consumer Dispute Mediation Commission calling for payment worth 100,000 won per person in connection with a personal data leak.

Industry sources said on Friday that SKT informed the commission on Friday afternoon that it would not accept the proposal. The proposal will therefore be terminated as unsuccessful. Applicants will now have to file separate civil lawsuits to receive compensation.

SKT said it had reviewed the commission's decision in depth but could not accept it, citing its voluntary compensation efforts and preemptive implementation of security strengthening measures, as well as the very large ripple effects of accepting the proposal.

The commission had earlier approved a mediation proposal saying it was recognized that consumer damage occurred due to SKT's personal data leak. It called for 58 applicants to receive a 50,000 won discount on telecom fees and 50,000 T Plus points that can be used like cash at partner companies, per person.

SKT's refusal is seen as stemming from concerns about the cost burden of compensation. If it had accepted the proposal, the same compensation would have been provided to other victims who did not participate in the mediation, and the total compensation size was estimated to reach 2.3 trillion won.

SKT also filed an administrative lawsuit in court on Jan. 19 after contesting a 134.79 billion won penalty imposed by the Personal Information Protection Commission over a personal data leak in August last year.