Samsung Electronics is still being accused of applying used phone compensation and discount policies disadvantageously to domestic users. In response, Samsung argues that although some models have higher compensation prices overseas, considering the discounts applied only in Korea, the lowest actual purchase price is lower in Korea.
On the 7th, Byun Jae-il, a member of the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee from the Democratic Party of Korea, stated in a press release, "Samsung set used phone compensation prices similarly to before during the launch of the Galaxy S24 series, and domestic discrimination remains severe."
When the Z Flip 5 was released in August last year, Samsung operated a trade-in program and applied different used phone compensation prices between Korea and the U.S., which was pointed out during the 2023 national audit but has not been corrected.
The trade-in program offers up to an additional 150,000 KRW (Korean standard) on top of the used smartphone price when returning a previously used phone.
On the 26th, the pre-opening day of the Galaxy S24, the Galaxy S24 Ultra is displayed at the KT Plaza Gwanghwamun Central Branch in Jongno-gu, Seoul. Photo by Jinhyung Kang aymsdream@
According to Assemblyman Byun, when returning a Galaxy Z Flip4 512GB in grade A condition and purchasing the S24, the maximum compensation price in Korea is 420,000 KRW, whereas in the U.S. it is 600 USD (810,000 KRW), showing about a twofold price difference. Also, unlike Korea where compensation varies by capacity even for the same model, the U.S. pays the same compensation regardless of capacity.
Additionally, Samsung operates the 'Samsung Offer Programs' in the U.S., which provide up to an additional 30% discount by occupation, such as for military personnel, firefighters, police officers, and students. Assemblyman Byun criticized this, saying, "Samsung, which already holds more than two-thirds of the Korean market, operates separate discount policies only in the North American market, which amounts to providing profits earned from domestic consumers to U.S. users, leading to national wealth outflow."
Regarding Samsung's claim that it also offers discounts to some customers such as public institutions and private companies in Korea through B2B, Assemblyman Byun pointed out, "Purchases can only be made through affiliated channels such as the ‘Student Welfare Store (students)’, ‘Samsung Galaxy Campus Store (students and faculty)’, and ‘Hyundai Easywell Welfare Mall’, and the scope is limited compared to the U.S."
Assemblyman Byun emphasized, "Samsung continues to apply policies that exclude domestic users from various benefits it provides, which stems from Samsung's monopoly in the domestic smartphone market. The government should actively discuss with Samsung to reduce the burden of high-priced devices, the main cause of household communication expenses, by lowering device prices and launching low-priced devices, and ensure that domestic consumers are no longer discriminated against by manufacturers in terms of pricing and discount policies."
In response to Assemblyman Byun's claims, Samsung stated, "It is true that some models have higher compensation prices in the U.S., but there are also models that do not, and when reflecting additional discount systems not available in the U.S., the lowest actual purchase price is lower in Korea." Samsung added, "When purchasing the Galaxy S24 Ultra 256GB (1,698,400 KRW) domestically and returning a Galaxy Z Flip4, consumers can receive up to 420,000 KRW in used phone compensation, and with dot-com instant discounts and card discounts added, consumers can purchase the product for about 1.17 million KRW."
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