'Raise S25, Lower S26'... With the Galaxy Z8 Launch, South Korea's Three Major Carriers Adopt a Two-Track Subsidy Strategy [IT Item of the Day]

[Financial News] The three major mobile carriers in South Korea are rolling out a two-track strategy for common handset subsidies ahead of the launch of Samsung Galaxy Z series 8, adjusting support by model. As the new lineup approaches, they are raising subsidies for older models that were released some time ago to speed up inventory clearance, while lowering subsidies for recently unveiled models and taking a breather.
According to the telecom industry on the 29th, the three major mobile carriers have raised the maximum common subsidy for the Samsung Galaxy S25 series from the previous range of 200,000 won to as much as 500,000 won since the end of last month. As a result, customers who buy a Galaxy S25 series device and sign up for a carrier plan of 100,000 won or more can receive up to 500,000 won in common subsidies. Even those who choose a low-cost plan in the 30,000-won range can receive between 210,000 won and 265,000 won. The S25, unveiled in February last year, is now about a year and a half old.
By contrast, relatively recently released products such as the Galaxy S26 series, launched in March this year, and the Samsung Galaxy Z Flip 7, released in July last year, have seen slightly lower common subsidies in order to maximize the impact of the Galaxy Z Flip/Fold 8 launch. In May, when demand was boosted by the holiday season, the maximum common subsidy was set at around 580,000 won to 700,000 won. Since June, however, all three carriers have reduced it to around 500,000 won. This appears to reflect an adjustment in common subsidies tailored to each model's sales strategy ahead of new product launches.
Separately from the common subsidy policy, sales incentives and promotions are being expanded across the lineup to stimulate the market during the off-season in the second quarter. According to so-called special deal sites, some distributors have been selling the Galaxy S25 for the equivalent of a "minus 100,000 won phone" on the condition that buyers maintain a plan in the 100,000-won range for a certain period. That comes after adding about 800,000 won in sales incentives to the 500,000-won common subsidy. The Galaxy S26 and Galaxy Z Flip 7 have also been sold in some cases as "free phones" or "100,000 won phones" by combining the common subsidy with sales incentives worth about 800,000 won.
The carriers are also running their own promotions. SK Telecom Co., Ltd. (SKT) is offering a 100,000-won discount through its "weekend-only time deal" to customers who buy the Galaxy S25 series, Galaxy S26 series, or Z Flip 7 through weekend chat consultations. KT Corporation is also offering an additional 50,000 won in compensation on top of the device price to customers who buy the Galaxy S26 series and sell their old phone. LG Uplus is running an event from the 1st to the 30th, offering a "free watch benefit" to customers who activate an S26 series device and apply for the promotion, allowing them to use the Galaxy Watch8 40mm at no device cost.
An industry source said, "In general, when a new product launch is approaching, subsidies for relatively recently released models are often adjusted to support sales of the latest devices." The source added, "For models that have been on the market for a long time, subsidy increases are repeatedly used as a policy pattern to help clear inventory." The source also noted, "Unlike the first quarter, when demand is concentrated around the new school year and Family Month, the second quarter is usually an off-season, so support for distributors can also be expanded to help boost sales."
[email protected] Choi Hye-rim Reporter