'Discontinued' LG Phone Clearance... KT Also Offers Up to 700,000 KRW Official Subsidy for 'LG Wing'

[Image source=Yonhap News]

[Asia Economy Reporter Joselgina] The value of LG Electronics phones, whose smartphone production has officially ended, is continuing to decline.

Following SK Telecom, KT also increased the official subsidy for the LG Wing, released in the second half of last year, up to 700,000 KRW, lowering the actual purchase price of the device to the 200,000 KRW range. As efforts to clear inventory accelerate, it is expected that the actual purchase prices of other models will also be lowered one after another. LG Electronics is scheduled to withdraw from the mobile business by the end of July.

According to industry sources on the 18th, KT raised the official subsidy for the LG Wing from a maximum of 240,000 KRW to 700,000 KRW as of that day. This is the first time KT has increased the official subsidy for the LG Wing since its release in October last year.

The LG Wing’s retail price is 1,098,900 KRW, and when using KT’s highest-priced plan, the actual purchase price after applying the official subsidy and additional distribution support is 293,900 KRW. In this case, consumers benefit more from device discounts than the 20% selection contract discount. Prior to KT, SK Telecom also raised the LG Wing’s official subsidy up to 700,000 KRW. LG Uplus offers up to 600,000 KRW.

On the same day, KT also increased the official subsidies for the LG V50S and V50 ThinQ to a maximum of 500,000 KRW each. Previously, the maximum was 215,000 KRW. The LG V50S’s retail price is 999,900 KRW, and the actual purchase price after applying all subsidies based on the highest-priced plan is 424,900 KRW. In this case, the 20% selection contract discount is more advantageous.

Earlier, on the 9th of this month, KT also adjusted the official subsidies for LG’s LTE phones such as the LG Q61, Q52, and Q31. These devices are currently available as '0 KRW phones.'

Since early this year, when rumors of LG Electronics’ withdrawal circulated, the three major carriers including KT have significantly increased official subsidies for key models including the LG Wing, preparing to clear inventory ahead of the withdrawal. Following LG Electronics’ cessation of phone production last month in preparation for mobile business withdrawal, there is speculation that official subsidies may increase further.

Official subsidies are jointly borne by carriers and manufacturers, but the exact burden ratio is not disclosed. Additionally, distribution channels provide support amounting to 15% of the official subsidy.

According to market research firm Counterpoint Research, LG Electronics held a 13% share of the domestic smartphone market last year. Even after business termination, LG Electronics has committed to supporting OS upgrades for LG phones for up to three years to ensure customers can use their devices with confidence. Product after-sales service (AS) will be available for at least four years.