LG Uplus has begun free SIM card replacements and updates, and the feared “open-run” rush did not materialise. Some say the company needs to prepare more thoroughly because customer demand could surge as replacements ramp up.

On April 13, LG Uplus began free SIM card replacements and updates for all customers. The company is operating a store-visit reservation system through the U+one app and its website. Through April 12, 180,560 reservations had been made. That includes 160,873 mobile customers and 16,687 budget-phone customers, or 1.4 percent and 0.2 percent of eligible customers, respectively.

The measure aims to improve the structure of the subscriber identity number, IMSI. LG Uplus has reflected part of customers’ actual mobile phone numbers when generating IMSIs since 2011, the early days of LTE adoption. It is not illegal, but concerns grew among customers after security threats were raised if it could be combined with other information. SK Telecom and KT have applied randomisation measures to IMSIs.

LG Uplus is conducting free SIM card replacements and updates for all customers to apply IMSI randomisation. Jae-won Lee (이재원), head of the consumer division at LG Uplus, explained, “This new security system is being applied so customers can use mobile telecommunications services more safely.”

After last year’s SKT hacking incident, the market raised concerns over supply instability as another large-scale SIM replacement measure was implemented. SKT previously experienced an early “SIM shortage” due to supply shortfalls.

But the feared disruption did not appear to occur on the day. LG Uplus has secured 2.09 million SIM cards for mobile customers and 1.68 million for budget-phone customers, or 3.77 million physical SIM cards in total. It also has 2 million eSIMs, for about 5.77 million in total. That far exceeds the number of advance reservations. An official at an LG Uplus store in northern Seoul said, “There were no major problems,” adding, “It can also be done through an online update, so demand for replacements is not as high as expected.”

Unlike SKT, where follow-up steps were taken after a hacking incident, LG Uplus is taking a precautionary measure in response to some concerns, industry sources say, and it did not lead to open-run chaos. The reservation system and preparations started a month earlier were also cited as factors that reduced confusion. LG Uplus announced the replacement plan in advance on March 17 and has focused on securing inventory. It also completed its response preparations, including deploying about 5,700 on-site staff and 522 headquarters support staff to 1,719 stores nationwide.

Some computer-system disruptions occurred on the morning, however. The related systems experienced issues as demand for replacements and updates surged, it was reported. An LG Uplus official said, “Traffic temporarily surged at the time the measure was implemented,” adding, “Everything has now been restored to normal.”

An industry official said, “Early on, dispersing demand based on reservations prevented major confusion, but the situation could change once actual SIM replacements begin in earnest.” The official added, “Response capabilities need to be strengthened further, especially in case offline visits concentrate at specific times and locations.”

LG Uplus will also visit 61 senior welfare centres nationwide to provide replacement services. For active-duty military service members, it will deliver SIM cards by courier upon request.