"Will you buy the 'Galaxy S25 (256GB)' for 1,150,000 won? If you switch your number, we'll provide you with a common support fund (previously known as the public support fund) of 500,000 won and an additional support fund of 750,000 won. You can take the phone for free and receive 100,000 won in cash for transportation."
On the first day of the repeal of the Mobile Device Distribution Improvement Act (the Device Subsidy Act) on the 22nd, an employee at a mobile communications retail store in Changwon, Gyeongsangnam-do, said this. The 'free phone' that used to be concentrated in specific areas of Seoul has now emerged in regional areas as well. A store in Wonju, Gangwon-do, also indicated that it was possible to purchase the Galaxy S25 for free.
With the repeal of the Device Subsidy Act, which had restricted device support funds for the past 11 years, the mood of free phone sales is spreading nationwide. The 'Galaxy Z Fold/Flip 7' to be officially sold on the 25th has not yet had significant support funds released. Even for those using a plan costing 100,000 won, the additional support fund was around 400,000 won. Considering the common support fund (a maximum of 500,000 to 600,000 won) and additional support funds, the Galaxy Z Flip 7 could be purchased for 400,000 to 500,000 won, while the Fold 7 was available for approximately 1,300,000 to 1,400,000 won.
During the Device Subsidy Act period, the additional support funds provided at retail stores were limited to within 15% of the public support funds determined at the stores' discretion, but now the restrictions on additional support funds have been fully lifted. After the repeal of the Device Subsidy Act, the public support funds are still offered equally by the three telecom companies under the name common support funds, but the additional support funds can vary by region and store. However, the common support funds provided by the three telecom companies as of the 22nd were largely unchanged, with a maximum of 500,000 to 600,000 won. An industry insider noted, "While the repeal of the Device Subsidy Act has enabled free phones to appear all over the country, only those who are informed about additional support funds first will have the opportunity to purchase them on a first-come, first-served basis."
◇ "The perception that it's always cheaper in Seoul will be broken"
Under the same conditions of 'number switch' and 'using a plan costing 100,000 won', an investigation was conducted to see if there were differences in the actual purchase prices of devices. In a retail store in Mapo-gu, Seoul, it was stated that the 1,150,000 won Galaxy S25 could be purchased for 150,000 won. This was due to a common support fund of 500,000 won plus an additional support fund of 500,000 won from the store. In a retail store in Wonju, it was indicated that they would provide a common support fund of 500,000 won and an additional 650,000 won from the store, thus advertising it as a 'free phone'. An employee at a retail store located in Changwon said, "Our store can offer an additional support fund of up to 750,000 won, in addition to the common support fund of 500,000 won. Take 100,000 won for transportation." The 'Galaxy Z Flip 7', officially going on sale from the 25th, was also cheaper in regional areas than in Seoul. A retail store in Mapo-gu offered a maximum additional support fund of 200,000 won for the Galaxy Z Flip 7. In contrast, Changwon and Wonju promised 400,000 won as additional support funds.
An insider in the telecom industry stated, "The repeal of the Device Subsidy Act will eliminate the prejudice that it is always cheaper to buy a phone in Seoul and more expensive in regional areas, as there will be stores in Seoul providing less additional support and others providing more." In fact, a retail store in Jung-gu, Seoul, indicated that it could provide an additional support fund of up to 400,000 won for the Galaxy Z Flip 7. At a retail store in Yeongdeungpo-gu, Seoul, it was advertised that customers could purchase the Galaxy S25 for free while receiving 270,000 won in transportation costs. This is even cheaper than at a retail store in Changwon.
◇ Numerous stores stating, "No additional support funds"
Even within Seoul, whether additional support funds were provided varied by retail store. There were not a few stores that announced they had no additional support funds at all. Employees at the three major telecom companies' direct stores and franchises in Gangnam-gu, Seoul, visited that day confirmed that aside from the common support funds disclosed on their companies' websites, there were no additional support funds available. Although customers could receive additional support funds with a 25% plan discount after the repeal of the Device Subsidy Act, no stores presented the option of that 25% discount first. One employee at a direct store said, "There's nothing beyond the common support funds. It's legally correct to provide additional support funds now that they are legal, but I understand that there has been no announcement from the headquarters and no allocated amount." An employee at a telecom company's franchise in Yeongdeungpo-gu, Seoul, also stated, "I have not received concrete instructions from headquarters regarding support funds. I think additional support funds may take some time before they're available."
There are concerns that sales incentives (rebates) provided for additional support funds may not be distributed to consumers and could instead be intercepted by retail store employees. An insider from the telecom industry remarked, "Because the repeal of the Device Subsidy Act doesn't compel everyone to receive the same support funds, it's not a problem if only the common support funds are provided to customers who are not informed, while additional support funds are claimed not to exist," and added, "It's likely that the sales incentives will end up in the pockets of retail store sellers."
◇ Clear concentration of benefits for high-cost plan users after the repeal of the Device Subsidy Act
The biggest change following the repeal of the Device Subsidy Act is that customers can receive additional support funds even if they choose a 25% contract plan discount. At an SK Telecom retail store in Jung-gu, Seoul, it was indicated that if one switches their number under the condition of using a plan costing 109,000 won, they would provide a common support fund of 500,000 won along with an additional support fund of 250,000 won for the 'Galaxy Z Flip 7 (256GB)'. They also stated that if a customer chooses the 25% discount plan, they can receive 400,000 won in additional support funds. If someone were to use a plan costing 100,000 won a month for two years, the sum of the discounted amount (654,000 won) and the additional support fund of 400,000 won would be 1,054,000 won, making it a much more favorable deal. With this arrangement, the actual purchase price for the 1,485,000 won Galaxy Z Flip 7 falls to 431,000 won. However, no additional support funds were provided to customers opting for a cheaper plan. Customers needed to spend at least 70,000 won to qualify for additional support funds.
Shin Hyun-doo, head of the Korea Consumer Association, noted, "Since each company has a limit on the marketing expenses set, it will be difficult to achieve the dramatic reduction in communication costs that the government anticipated, and ultimately only customers who actively seek out better prices will be able to open phone contracts at lower costs." He added, "Unless the telecom companies' marketing budget increases, the benefits of reducing communication costs will only go to a few, not the public as a whole."
Meanwhile, that day, the Shin-dorim Technomart and Gangbyeon Technomart, known as mobile phone sanctuaries, were difficult to find, as regular holidays meant users expecting an open run due to the Device Subsidy Act's 'free phone frenzy' were nowhere to be seen.