Retailers and carriers often offer subsidies on some of the most popular devices on the market to bring in new customers. It’s not uncommon for them to offer discounts of up to a couple of hundred dollars. However, in South Korea’s cutthroat smartphone market, retailers push this to the limit.
The Galaxy S8 has a recommended retail price of 935,000 won ($825) in South Korea but it can be purchased for as low as 753,000 won ($665) after taking advantage of all legal subsidies and discounts.
However, many online and offline retailers have been offering illegal subsidies to customers in South Korea for more than a week. Subsidies worth more than 600,000 won are being provided and customers are able to pick up a Galaxy S8 for less than $180.
The Korea Communications Commission keeps an eye on the daily rate of new smartphone subscriptions in the country. It hovers around 24,000 units daily and if it sees an unexplained spike, the KCC launches an investigation. Just last week, it recorded 28,267 subscriptions on one day alone.
The KCC has temporarily halted the monitoring of new subscriptions and thus the retailers have gone crazy with the subsidies. It has now threatened to launch an investigation into the actions of those involved if the illegal subsidies continue to be offered.
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