KT Also Increases LG Phone Official Subsidy... Q92 Becomes a '0 Won Phone'

Increase from a maximum of 240,000 won to 450,000 won

LG Q92

[Asia Economy Reporter Seulgina Jo] LG Electronics' budget 5G phone LG Q92, which emphasized 'cost-effectiveness,' has finally become a '0-won phone.' Since LG Electronics officially announced its withdrawal from the smartphone business earlier this month, mobile carriers' efforts to clear out inventory have also accelerated.

According to industry sources on the 15th, KT raised the official subsidy for the LG Q92 from a maximum of 240,000 KRW to 450,000 KRW as of that day. The LG Q92's retail price is 499,400 KRW, and if you use a KT plan costing more than 80,000 KRW per month, the actual purchase price, including an additional 15% subsidy from the distribution network, drops to 0 KRW. This is the first time KT has adjusted the official subsidy for this model since its release in the second half of last year.

Released with premium-level features at a price in the high 400,000 KRW range, the LG Q92 was a product that received enthusiastic responses from LG fans for its outstanding cost-effectiveness, to the point where some said it was 'team killing.' Earlier this year, LG Uplus adjusted the official subsidy to a maximum of 420,000 KRW, making the actual purchase price as low as the high 10,000 KRW range.

This is the first time since LG Electronics officially announced the end of its smartphone business that subsidies for 5G phones have been increased and 0-won phones have appeared. Shortly after the announcement, on the 9th, LG Uplus raised its official subsidy, but that was for the LTE budget smartphone LG Q61. The official subsidy for the LG Q61 increased from a maximum of 125,000 KRW to 321,000 KRW. When using LG Uplus's monthly plan costing around 100,000 KRW, the actual purchase price is as low as 450 KRW.

The three major carriers have significantly increased official subsidies for key models including the LG Wing since early this year, when rumors of LG's withdrawal circulated, effectively starting to clear out inventory in preparation for the exit. Following the business termination announcement on the 5th, they are also considering expanding marketing support for the latest smartphones. A carrier official said, "We have been clearing some inventory since early this year," but added, "We will monitor market conditions and respond accordingly for the remaining stock."

Looking at the current official subsidy status for LG Electronics' 5G smartphones, the highest subsidy for the V50 (730,000 KRW) is already close to the retail price (ranging from 899,800 to 752,000 KRW depending on the carrier). Including additional subsidies from distribution networks, some carriers and retailers offer it at a 0-won or near-zero price. The LG Velvet, released last year, is effectively being sold as a 0-won phone mainly through MVNOs early this year. There are expectations that official subsidies may be further increased even among the three major carriers, where the actual purchase price is in the 200,000 KRW range.

LG Electronics, which announced plans to withdraw from the smartphone business by the end of July, will continue producing phones until the end of May to supply products promised to telecom operators and other partners. Even after the business ends, LG will support operating system (OS) upgrades for up to three years to ensure customers can use LG phones with confidence. Product after-sales service (AS) will be available for at least four years.

According to market research firm Counterpoint Research, LG Electronics held a 13% share of the domestic smartphone market last year.