Galaxy S24 for free? How Korea’s new subsidy schemes could make it possible،
- Subsidies for number portability in South Korea discussed
- There was a cap on “regular” subsidies when purchasing a carrier phone, but the cap has been lifted
- The starting price of a Galaxy S24 is 1.155 million KRW, which is the amount of the two subsidies.
There is an article in Korean Ajunewstitled :
Starting tomorrow, upgrading to the Galaxy S24 makes it practically 'free'
A rough translation of the report claims that this is possible after changes to the Mobile Device Distribution Improvement Act, aimed at reducing household communication costs.
Changing mobile phone carriers (number portability) in South Korea now comes with the possibility of receiving additional assistance of up to 500,000 KRW (South Korean won; 500,000 KRW is approximately $380 ) in addition to “regular” subsidies. Until not so long ago, there was a ceiling for these “regular” subsidies (applied when purchasing a device from national operators), but it was recently lifted.
Before this change, the government capped subsidies to carriers at 240,000 KRW (~$180). Mobile operators in South Korea are now wooing users with subsidies of between 55,000 KRW ($42) and 500,000 KRW for a new Galaxy S24 device and a mobile plan.
The most important change is of course the provision of transition support funds. Korean operators could now pay up to 500,000 KRW in transition support funds covering cancellation fees, SIM card issuance fees and loss of long-term subscription benefits in case of switching competing package.
Considering this, if one were to port their number and purchase a Galaxy S24, they could receive support totaling up to KRW 1.15 million in these new funds: “regular” grants and “transition” grants. Notably, some mobile phone retailers are offering additional, even higher subsidies of up to 15% of the operator's, amounting to a total support of KRW 1.15 million. From the ground up Galaxy S24 If the model sells for 1.155 million KRW, it could essentially become a “free phone”.
Kim Hong-il, chairman of the Korea Communications Commission, stressed that the amendments aim to reduce the financial burden on consumers and encourage a more competitive market. However, it remains unclear whether this will reinvigorate real competition, as carriers are reluctant to invest heavily in subsidies.
