Samsung mulls new compensation program for Galaxy Note 7 users

[THE INVESTOR] In a desperate move to pacify its displeased Galaxy Note 7 users, Samsung Electronics  is considering cash discounts for their future purchase of the upcoming Galaxy S8 or the next Note phone next year, industry source said on Oct. 20.

The new benefits come after a group of angry consumers on Oct. 19 hinted at filing lawsuits against Samsung to seek better compensation in the wake of the unprecedented recall of the fire-prone Note phone in Korea and the US, respectively. 

In Korea, the company is currently offering a complimentary voucher worth 30,000 won (US$26) for Note users when they return their phones and a one-time 70,000 credit on their monthly mobile bills is also given when they replace the phone with other Samsung phones.

Thus far, only 10 percent of some 500,000 Note users here are estimated to have returned the phone.

Many of them say they are reluctant to return their phone due to few options to choose in the market. With the new cash benefits, Samsung hopes to induce all Note phones to be recalled by the end of this year as scheduled.

In the meantime, in a closed-door meeting with Korea’s ICT Minister Choi Yang-hee, Samsung’s mobile sales team leader Kim Jin-hae reportedly said the company would come up with measures to minimize the impact from the discontinued Note.

By Kim Young-won (wone0102@heraldcorp.com)