Did They Aim for the 'Chuseok Crisis'?…Top 3 Mobile Carriers Double Official Subsidies for Galaxy Note20

Galaxy Note20 Official Subsidy Increased to Up to 500,000 KRW
Raised Twice from Maximum 240,000 KRW at Early August Launch
'GalNote20' Sold for 50,000 KRW at Online and Offline Hotspots
Galaxy S20 Ultra Also Sees Price Cut and Increased Official Subsidy

[Asia Economy Reporter Han Jinju] During the Chuseok holiday period, mobile carriers simultaneously doubled the official subsidies for the Galaxy Note20 series. Ahead of the launch of new products such as the Galaxy S20 FE and iPhone 12, they aimed to capture replacement demand during the Chuseok holiday. They are focusing on driving replacement demand by also lowering the prices of the Galaxy S20 series.

According to the industry on the 2nd, the three major carriers raised the official subsidies for the Galaxy Note20 series up to 500,000 KRW as of the 30th of last month. LG Uplus increased the official subsidies for the two Galaxy Note20 models to between 326,000 KRW and 500,000 KRW, KT to between 300,000 KRW and 500,000 KRW, and SK Telecom to between 345,000 KRW and 480,000 KRW.

Based on unlimited 5G data plans in the 80,000 KRW range, SK Telecom offers 480,000 KRW in official subsidies for the 5GX Prime plan (89,000 KRW/month), KT offers 450,000 KRW for the Super Plan Basic (80,000 KRW/month), and LG Uplus offers 500,000 KRW for the 5G Smart plan (85,000 KRW/month). The retail price of the Galaxy Note20 is 1,199,000 KRW, and the Galaxy Note20 Ultra is priced at 1,452,000 KRW.

Compared to the highest official subsidy amounts set at launch on August 7, which ranged from 170,000 KRW to 240,000 KRW depending on the carrier, this is an increase of more than 300,000 KRW. It is unusual for official subsidies to more than double in less than two months. With new product launches such as the iPhone 12 and Galaxy S20 FE scheduled, this is interpreted as a strategy to boost sales of the Galaxy Note20 series both online and offline during the Chuseok holiday period.

During the Chuseok holiday, a 'Galaxy Note20 frenzy' occurred. On online communities, posts are continuously uploaded stating that the Galaxy Note20 can be purchased for 50,000 to 70,000 KRW on number portability and for around 100,000 KRW on device change nationwide. This is due to the increased official subsidies and the rise of retailers offering additional illegal subsidies.

Inventory clearance of older models is also actively taking place ahead of the Galaxy S20 FE launch. Samsung Electronics began discount sales of unlocked Galaxy S20 series models at Digital Plaza stores starting last month. The Ultra model was reduced to 1,248,900 KRW, the Galaxy S20 Plus (original price 1,353,000 KRW) to 1,199,000 KRW, and the Galaxy S20 (original price 1,248,000 KRW) to 1,099,000 KRW, with discounts exceeding 200,000 KRW.

LG Uplus lowered the official price of the Galaxy S20 Ultra model from 1,590,000 KRW to 1,452,000 KRW at the end of last month and raised the official subsidy to 600,000 KRW based on 80,000 KRW range plans. KT also increased the official subsidies for the Galaxy S20 series up to 550,000 KRW earlier last month and lowered the official price of the Galaxy S20 Ultra to 1,452,000 KRW.

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