In some smartphone retail outlets, a Samsung Galaxy Note 3 is sold at only 40,000 won (US$36.40) with a generous application of subsidies. After LG U+, SK Telecom will follow suit from January 1 next year with an offer of up to 700,000 won in device subsidies. In this case, the final selling price would go down as low as to 100,000 won and to 40,000 won if store discount is applicable.
But the officially announced subsidy amount goes up to 725,000 won when the user opts for a monthly unlimited calling & data rate plan (100,000 won). If the user chooses a rate plan lower than that, for example, one that charges 69,000 won a month, the subsidies would fall to 595,000 won.
But some postings on smartphone users' community bulletin boards warn consumers that they should wait more for better deals. For example, if a user who buys a Galaxy Note 3 now loses the device or finds it out of order before the 2-year contract period, she must pay back the subsidies in the form of penalties.
Source: The Korea Economic Daily
