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Smartphone Vendors Gain Greater Freedom to Subsidize Handset Sales

Written: 2025-07-22 17:33:34Updated: 2025-07-22 17:42:56

Smartphone Vendors Gain Greater Freedom to Subsidize Handset Sales

Photo : YONHAP News

Getting a new smartphone is getting less expensive in South Korea, depending on which vendor you choose when you sign up for monthly mobile service.  

As of Tuesday, mobile phone retailers are free to subsidize handset purchases for their customers without the restrictions they faced since 2014.

To protect consumers from price discrimination, the Mobile Device Distribution Improvement Act limited how much vendors could offer in device subsidies as part of their smartphone-mobile service bundles.

With the controversial restrictions abolished Tuesday, monthly bills may get cheaper if customers opt for plans that include subsidies from the vendors on top of those already offered by large telecommunications service carriers.

Previously banned practices like cash-back promotions are now allowed if clearly stated in contracts.

Industry watchers say upcoming device launches, including the introduction of Samsung’s Galaxy Z Flip 7 and Apple’s iPhone 17, will test the new market environment.

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