‘Discontinued’ LG Phones Get Cheaper... LG Velvet Official Subsidy Up to 700,000 KRW

LG Velvet (LG VELVET) [Image source=Yonhap News]

[Asia Economy Reporter Joselgina Cho] The value of LG Electronics phones, whose smartphone production has officially ended, has dropped further. The actual purchase price of the strategic smartphone LG Velvet, released last year, has fallen to as low as 90,000 KRW. As the clearance sale accelerates, it is expected that the actual purchase prices of other models will also decrease one after another. LG Electronics is set to withdraw from the mobile business by the end of July.

According to the industry on the 1st, KT raised the official subsidy for the LG Velvet from a maximum of 600,000 KRW to 700,000 KRW as of that day. This is the highest level among the three major mobile carriers. Currently, the official subsidies for the highest-priced plans of SK Telecom and LG Uplus are set at 500,000 KRW.

The retail price of the LG Velvet is 899,800 KRW. When using a KT plan costing more than 100,000 KRW per month, the actual purchase price, including an additional 15% subsidy from the distribution network, drops to 94,800 KRW. By plan, KT also raised the official subsidy for the Super Plan Basic, which costs about 80,000 KRW per month, from 550,000 KRW to 600,000 KRW. For the 5G Save plan costing 45,000 KRW per month, the subsidy was increased from 292,000 KRW to 341,000 KRW.

On the same day, KT also raised the official subsidy for LG Electronics' budget 5G phone, the LG Q92. This model had already been listed as a 'zero-won phone' after the subsidy was increased last month. For high-priced plans, the official subsidy remains the same as before (up to 450,000 KRW), but this time, plans costing less than 80,000 KRW per month were also adjusted. The official subsidy for plans around 80,000 KRW per month was raised from 400,000 KRW to 450,000 KRW, and for the 5G Slim plan costing 55,000 KRW per month, the subsidy increased from 262,000 KRW to 330,000 KRW. For the 5G Save plan costing 45,000 KRW per month, it also rose by 12,000 KRW to 282,000 KRW.

The three major carriers have significantly increased official subsidies for key models including the LG Wing since early this year, when rumors of LG Electronics' withdrawal circulated, in preparation for clearing inventory ahead of the exit. With LG Electronics officially ending phone production as scheduled the day before, ahead of the mobile business withdrawal at the end of July, there are expectations that official subsidies may increase further.

According to market research firm Counterpoint Research, LG Electronics held a 13% share of the domestic smartphone market last year. LG Electronics has stated that even after business termination, it will support OS upgrades for LG phones for up to three years to ensure customers can use LG phones with confidence. Product after-sales service (AS) will be available for at least four years.

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