Police on Wednesday arrested two people in connection with widespread reports of micropayment fraud among KT subscribers.

Police say the suspects, 48 and 44, used an illegal portable base station to breach the phones of KT users located in the Seoul metropolitan area.

The suspects used the hacked phones to make small transactions, including purchasing gift cards and topping up transit passes, according to police.

One man was arrested at  Incheon International Airport shortly after arriving from China, and the other was taken into custody in Seoul's Yeongdeungpo district the same day.

Investigators believe the first suspect was responsible for hacking the phones and making the micropayments while the second suspect converted those illicit payments into cash.

The two, both of whom are Chinese nationals, face charges including computer fraud, network intrusion and money laundering.

Police said they are continuing to investigate the pair to determine the full scope of the operation.