Fold·Flip5 Launch Imminent... Galaxy Official Subsidy Increased

Clearing Inventory Focused on High-End and Large-Capacity Models

With the unveiling of the Galaxy Z Fold and Flip5 just three weeks away, the three major telecom companies have raised their official subsidies. This move aims to clear out old Galaxy smartphone inventory. The actual purchase price has been lowered mainly for high-capacity and premium models, which have a significant price burden.

On the 4th, SK Telecom increased the official subsidies for the Galaxy Z Fold and Flip4 512GB models by about 100,000 KRW each. This comes about two months after the subsidy increase in early May.

[Image source=Yonhap News]

The official subsidies range from 479,000 KRW (for users on the Basic plan at 49,000 KRW/month) to 720,000 KRW (for users on the 5GX Prime Plus plan or higher at 99,000 KRW/month). Previously, the subsidies were around 380,000 to 620,000 KRW.

For users on high-tier plans, the price of the Fold4 512GB model drops from the retail price of 2,119,700 KRW to 1,291,700 KRW. This is because they receive the maximum official subsidy of 720,000 KRW plus an additional distribution subsidy of up to 15% of the official subsidy, amounting to 108,000 KRW. The Flip4 512GB model price falls from 1,474,000 KRW to 646,000 KRW. Consumers on the Basic plan receive an official subsidy of 479,000 KRW plus an additional subsidy of up to 71,800 KRW. As a result, the Fold4 and Flip4 can be purchased for 1,568,900 KRW and 923,200 KRW respectively.

Earlier, KT also increased the official subsidies for the Fold and Flip4 512GB models on the 23rd of last month. Users on the highest-tier Choice Premium plan (130,000 KRW/month) can receive up to 800,000 KRW. With an additional subsidy of up to 120,000 KRW based on the Choice Premium plan, the Fold4 can be purchased for 1,199,700 KRW and the Flip4 for 554,000 KRW.

On the 20th, the three telecom companies simultaneously lowered the retail price of the Galaxy S22 series’ highest-end Ultra model by 154,000 KRW. This is the first price reduction for the S22 Ultra. With a device retail price of 1,998,700 KRW, SKT offers up to 620,000 KRW, KT up to 800,000 KRW, and LG Uplus up to 600,000 KRW in subsidies. KT raised the official subsidy for the S22 Ultra to a maximum of 800,000 KRW on the 30th. Using the highest-tier plan and receiving an additional 15% subsidy, the actual purchase prices are 585,000 KRW for SKT, 378,000 KRW for KT, and 608,000 KRW for LG Uplus.

The reason telecom companies are consecutively raising official subsidies and lowering retail prices to reduce the actual purchase price is interpreted as a final effort to clear out inventory ahead of the Fold and Flip5 launch. Samsung Electronics is expected to hold a 'Galaxy Unpacked' event at COEX in Seoul on the 26th to unveil the Fold and Flip5.