Fire Outbreak

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A massive fire at the telecom service provider KT this past weekend has inflicted serious damage to small businesses, which largely rely on weekend sales. Many of them sustained losses due to disruptions in credit card payment and phone service. Here's more on how small entrepreneurs may be compensated for their losses caused by the Saturday fire at KT.

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This Internet cafe had to close down for the weekend because there was no Internet connection for two consecutive days. The cafe, which makes most of its profits on weekends, has sustained serious losses because telecommunication services were cut off due to a fire at KT.

[Soundbite] Kim Yong-ja(Internet cafe owner) : "They say the service will be restored in one or two days. But the problem caused by this situation will last more than just a couple of days. I may lose my regular customers."

KT has pledged to compensate its customers.

[Soundbite] Hwang Chang-kyu(Chairman, KT) : "We will discuss compensation for small entrepreneurs with the relevant organs and provide it quickly."

KT subscribers who have suffered damage related to landline and wireless communication services will be exempted from telecom fares for one month. The telecom service provider says it will also consider compensation for small entrepreneurs separately. However, there are neither precedents nor regulations on how to compensate for secondary damage such as business losses caused by telecom service disruptions. When SK Telecom services were cut off for five hours four years ago, designated drivers filed a lawsuit demanding compensation for business losses, but they lost. The court did not recognize secondary damage because estimating the exact amount of losses was not easy. However, some say that the situation is different this time around.

[Soundbite] Hwang Bang-mo(Lawyer) : "The service has been severed for two consecutive days, and more people will likely suffer damage. This means that unlike in the past, a court will likely recognize secondary damage this time."

Those who have suffered serious losses due to the worst telecom service disruption this past weekend hope they will be able to receive proper compensation.