"Received 12 Fare Cards" Flood of 'Chabi Phones' After Galaxy Note20 Release

Samsung Electronics held an online Galaxy Unpack event at 11 PM on August 5. At the Unpack event, five new products were announced, including the Galaxy Note20, Galaxy Z Fold2, the smartwatch 'Galaxy Watch3', wireless earbuds 'Galaxy Buds Live', and the tablet 'Galaxy Tab S7'.
[Image source=Yonhap News]

[Asia Economy Reporter Seulgina Jo] "The hotspot is really a hotspot. I received 12 cashback tickets (120,000 KRW) for the Galaxy S10." "I'm heading to the online coordinates. iPhone and Galaxy free phones." "Compared to other hotspots, the effort of visiting in person paid off. My wife also changed her device."

With the release of new models starting with the Galaxy Note20 in the second half of the year, free and cashback phones are flooding the smartphone market again. This is a move to clear out inventory of previous models. Many cashback offers are conditional on subscribing to high-priced plans and additional services.

According to online communities such as Mobile Phone Ppomppu and Clien on the 7th, posts introducing the locations of stores selling free and cashback phones, detailed prices, and purchase reviews have been posted daily since the beginning of this month.

One netizen said, "The hotspot is really a hotspot," adding, "I opened a Galaxy S10 5G model with 12 cashback tickets." Another netizen introduced, "I opened a Galaxy S20 at the back gate of 00 University with LG Uplus number portability and full cash payment of 120,000 KRW on the same day," and "iPhone SE2 can be purchased with cashback on a 69,000 KRW plan." Many posts pinpoint the so-called free phone coordinates known as "bbangjip" (free phone stores). There was also a post about buying a Galaxy Note10 through device change and being satisfied with the price, leading the family to replace their smartphones as well.

Cashback (payback) is not given unconditionally. For Galaxy devices, maintaining a high-priced plan of 85,000 KRW or more and subscribing to one additional service is required. For relatively cheaper models like Galaxy Quantum, A series, and iPhone SE, many stores offer free phones under conditions such as number portability and high-priced plans. Phrases like "cashback paid on the same day" are also noticeable. One netizen expressed satisfaction, saying, "I received coordinates (purchase location) online, visited, received cashback, and opened an S10." The retail price of the Galaxy S10 5G model ranges from 998,800 to 1,031,800 KRW.

Galaxy S10. Photo by Samsung Electronics

The background for the emergence of cashback phones is that mobile carriers have consecutively increased official subsidies for older devices released last year and earlier this year, following the release of new smartphones like the Galaxy Note20. With additional incentives from retailers to clear inventory, free and cashback phones have appeared one after another.

On the day of the Galaxy's second unpack event on the 1st, SK Telecom raised the official subsidy for the Galaxy A50 from 70,000 KRW to 290,000 KRW. On the same day, KT also increased subsidies for the Galaxy S10 and A90, and LG Uplus raised the subsidy for the Galaxy S10 up to 400,000 KRW.

On the 4th, the official subsidy for the Galaxy S20, which was released about half a year ago, was also increased. SK Telecom raised the S20 subsidy to a maximum of 420,000 KRW in May and added another 60,000 KRW. The official subsidy for the Galaxy Note10 was also raised up to 500,000 KRW based on plans around 89,000 KRW.

For the LG Velvet, adding additional subsidies to the increased official subsidy (500,000 KRW) lowers the official online mall price to the 300,000 KRW range. The Galaxy Z Flip LTE model released in February also saw its retail price reduced by about 300,000 KRW due to the release of the 5G model. However, the official subsidy for the Z Flip LTE model remains the same.

Samsung Electronics has kicked off the release of new smartphones for the second half of the year. Following the launch of the Galaxy Note20 series last month, Samsung is preparing for pre-orders of the Galaxy Z Flip 5G model on the 11th and its official release on the 18th. LG Electronics is set to release its second half flagship smartphone, the LG Wing, on the 14th. Apple will also unveil its first 5G iPhone next month.

This content was produced with the assistance of AI translation services.