Approaching two years since launch, Samsung Electronics' Galaxy S24 series has reappeared at so-called mobile phone "holy sites," drawing attention. The reason the older Galaxy S24 model has become eligible for subsidies is related to the KT hacking incident and the launch of the new iPhone. As KT moved into aggressive iPhone marketing to prevent subscriber churn, competitors responded with "chabi phones." A chabi phone refers to a device that goes beyond being free to include a cash top-up.
◇ Get a chabi payment when you port your number at a holy site and buy a Galaxy S24
On the 13th, price boards at so-called "mobile phone holy sites" in Guro, Gangseo, Gwanak, and Mapo districts in Seoul listed the Galaxy S24 series. That day, at some stores, if you ported your number to SK Telecom and bought a Galaxy S24 (256GB), you could get 80,000 won back as "chabi." If you switched your carrier to KT, you would get 10,000 won back. If you switched to LG Uplus, you could buy it for 210,000 won. However, all three carriers require you to keep a high-priced plan costing more than 100,000 won for four to six months.
The Galaxy S24 FE model is also a "chabi phone." That day, at some retailers, if you switched your carrier to SK Telecom, you could buy the Galaxy S24 FE (256GB), which has a list price of 946,000 won, and get 170,000 won back. In early June this year, you had to pay 200,000 won under the same conditions at holy sites to buy the model. If you switch to KT, you receive 340,000 won; if you switch to LG Uplus, you receive 250,000 won.
◇ Market share battle spreads from iPhone 17 to Galaxy S24
The reason the Galaxy S24 series has recently been released through retail channels at "clearance" levels is competitive subsidies by carriers. Typically, phone makers and carriers concentrate subsidies on new products to quickly move fresh inventory. But with the iPhone 17 launching on the 19th of last month and the KT hacking incident surfacing around the same time, KT moved into aggressive "iPhone marketing" to prevent subscriber outflow.
Amid the fallout from the hacking, KT promoted a "pre-compensation program" that compensates 50% of the list price for customers activating an iPhone 17 and lets them swap to a new device when they return the handset after two years. It also added extra subsidies. In fact, on the 12th at a phone retailer in Seoul's Guro District, if you moved your number to KT, you could buy an iPhone 17 (2156GB) with a list price of 1.29 million won for 440,000 won. That is half the SK Telecom price (910,000 won) and cheaper than LG Uplus (520,000 won). However, depending on timing, LG Uplus has also sold the iPhone 17 at a lower price than KT.
Typically, subsidies are shared by manufacturers and carriers, but unlike Samsung Electronics, Apple does not provide support payments. Therefore, the high discount rate on iPhones means carriers have invested their own marketing expense.
Thanks to this strategy, KT succeeded in defending its subscriber base in September. According to the Korea Telecommunications Operators Association (KTOA), KT's subscribers fell by 2,992 in September. Compared with SK Telecom, whose subscribers have fallen by 750,000 since the hacking incident on 4th, the change is minimal.
As competition in the telecom market intensified around the iPhone, SK Telecom and LG Uplus injected additional subsidies into the Galaxy S24 series with remaining inventory to target "niche demand." They aimed at consumers who prioritize cost-effectiveness over expensive new models. KT also responded by providing additional subsidies for the Galaxy S24 series, and the three carriers' market share war has spread from new phones to older models.
A telecom industry official said, "Because both carriers and manufacturers must quickly move new models, it is rare to provide subsidies for older devices," adding, "The recent widespread release of the Galaxy S24 as a 'chabi phone' is a defensive strategy by carriers to avoid losing subscribers to rivals."