Impact of SKT's Suspension of New Subscriptions
All Three Major Carriers Shift to Conservative Marketing
On May 23, Samsung Electronics officially launched the ultra-slim smartphone 'Galaxy S25 Edge' in the domestic market. As the final model in the Galaxy S25 series, it has gained popularity among younger generations with its slim profile and enhanced performance. However, the overall atmosphere in the mobile carrier distribution market remains subdued. This is because, following the SK Telecom hacking incident, all three major telecom companies have shifted their marketing strategies to a more conservative approach.
The Galaxy S25 Edge features an ultra-slim, ultra-lightweight design with a thickness of 5.8mm and a weight of 163g. It is equipped with a titanium frame and 'Corning Gorilla Glass Ceramic 2' to enhance durability. The device also boasts a 200-megapixel wide-angle camera and artificial intelligence (AI) editing capabilities, reinforcing its positioning as a premium product. During the pre-sale period, over half of the customers on Samsung.com were from the 1030 generation, highlighting strong interest from younger consumers.
The three major telecom companies set official subsidies for this model ranging from 52,000 won to a maximum of 250,000 won, depending on the plan. While there was speculation that KT and LG Uplus might increase subsidies to capitalize on SK Telecom's difficulties, in the end, all three carriers maintained similar subsidy levels and adopted a conservative stance. This is due to the Korea Communications Commission tightening its monitoring of subsidies out of concern for overheating in the number portability market after the SKT hacking incident, and because the industry as a whole is maintaining a cautious atmosphere. KT and LG Uplus are also seeing a net increase in subscribers by absorbing demand from SKT defectors, even without additional marketing efforts.
Currently, SKT has suspended new subscriptions and number portability through certain channels since May 5, in accordance with administrative guidance from the Ministry of Science and ICT. This suspension applies to directly managed stores and the official online mall, T Direct Shop, while activations are still possible at general retail stores. However, due to negative public opinion and regulatory risks stemming from the hacking incident, SKT is finding it difficult to engage in aggressive marketing. An industry insider stated, "It is clear that SKT, which has the largest subscriber base, is at a disadvantage in the initial competition to secure customers for this new product launch."
Since the hacking incident, SKT has been strengthening its USIM protection service, launching a USIM replacement program, and introducing eSIM, but it is expected to take some time before the new subscription process is fully normalized. This is also likely to have some impact on the distribution of demand for premium new products.
Meanwhile, Samsung Electronics has also been strengthening non-carrier channels by offering programs such as the 'New Galaxy AI Subscription Club' for unlocked device customers. The Galaxy S25 Edge is priced at 1,496,000 won for the 256GB model and 1,639,000 won for the 512GB model.
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