"Galaxy Note20 50,000 Won Subsidy Frenzy"... Illegal Subsidies Rampant Even During Chuseok

Galaxy Note20 Sold from as Low as 50,000 Won
Galaxy S10 Offers Up to 300,000 Won Subsidy
Older Models' Prices Lowered to Clear Inventory

On the 23rd, when social distancing level 2 was expanded nationwide, citizens gathered at the Galaxy Note20 experience center set up in a large shopping mall in Yeongdeungpo, Seoul. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Han Jinju] "The Galaxy Note20 frenzy is real." "I got the coordinates to the holy place and switched to the Note20."

During the Chuseok holiday, stores appeared selling the Galaxy Note20 with illegal subsidies for around 50,000 won. Smartphones released this year such as the Galaxy S10, iPhone SE, and LG Velvet were found to be available for free or with just a small fee.

According to industry sources on the 1st, online and offline retailers are offering more than 300,000 won cashback on the Galaxy S10 and iPhone SE, while the Galaxy S20 is sold with cashback between 100,000 and 190,000 won, and the Galaxy Note20 is sold with cashback ranging from 50,000 to 200,000 won.

Online communities are enticing consumers by stating that the Galaxy S20 comes with 10,000 won cashback and that purchasing the Galaxy S10 can yield up to 360,000 won cashback. Price tags indicating that the LG Velvet is free and the iPhone SE offers up to 50,000 won cashback are easy to find.

Stores known as "holy places" often require customers to subscribe to high-priced plans over 80,000 won and additional services in exchange for illegal subsidies higher than the official support funds. Many cases have been reported where the price changes at the time of actual subscription despite reservations being made under the promise of low prices, so consumers should be cautious.

Meanwhile, mobile carriers have been reducing the retail prices of devices released last year to clear inventory. Since last month, the three major carriers have lowered the LG V50S ThinQ’s retail price from 1,199,000 won to 999,900 won. The Galaxy S10’s retail price has also dropped to the 800,000 won range. LG Uplus reduced the Galaxy S10 512GB model’s retail price to 832,700 won on the 19th of last month.

Initially, carriers set minimal subsidies at launch, but as new products flood the market, they have been increasing official subsidies belatedly. KT raised the official subsidy for the LG Velvet from 480,000 won to 600,000 won on the 10th. SK Telecom increased it from 420,000 won to 600,000 won.