Announcement of Maximum Public Subsidy of 500,000 Won
Samsung Electronics held the 'Galaxy Unpacked 2021' event early on the 15th and unveiled the smartphone 'Galaxy S21' series. On the same day, promotional materials for the related products were wrapped at the Samsung Electronics Delight Shop in Gangnam-gu. Photo by Mun Ho-nam munonam@
[Asia Economy Reporter Seulgina Cho] The three major domestic mobile carriers announced on the 15th that the official subsidies for Samsung Electronics' new smartphone, the Galaxy S21, which has entered pre-orders, will be up to 500,000 KRW. Among the carriers, LG Uplus offered the highest subsidy of up to 500,000 KRW, showing a significant gap compared to SK Telecom (up to 170,000 KRW) and KT (up to 240,000 KRW).
According to industry sources, LG Uplus set the preliminary subsidies for the Galaxy S21 series by plan at 268,000 to 500,000 KRW on the same day. For the flagship plans with monthly fees of 85,000 KRW or more, which offer unlimited 5G data (5G Smart, 5G Premier Regular, 5G Premier Plus, 5G Premier Super, 5G Signature), the subsidy is 500,000 KRW. Including an additional 15% support on top of the subsidy for plans over 85,000 KRW, the Galaxy S21, priced at 999,900 KRW, can be purchased for as low as 424,900 KRW.
Considering that the official subsidies from the three carriers for the Galaxy S20 and Galaxy Note 20 were around a maximum of 240,000 KRW, LG Uplus, the third-largest carrier, is regarded as having made a bold move. Based on the maximum amount, this is more than double the subsidies offered by SK Telecom and KT.
On the same day, SK Telecom announced official subsidies for the Galaxy S21 ranging from 87,000 to 170,000 KRW. Choosing a plan with a monthly fee in the 89,000 KRW range (5GX Prime, 150,000 KRW subsidy) results in a 350,000 KRW difference in subsidies compared to LG Uplus. KT set subsidies at around 100,000 to 240,000 KRW. For KT as well, the difference is 350,000 KRW based on a 90,000 KRW monthly plan (Super Plan Basic Choice, 150,000 KRW subsidy).
The announced subsidies are subject to change and will be finalized on the 22nd, when pre-order customers begin activation. With LG Uplus taking an aggressive stance, there is a possibility that SK Telecom and KT will also join the competition for official subsidies.
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