Samsung Electronics to launch phone upgrade scheme

Samsung Electronics will launch "Galaxy Club," a new phone upgrade plan, on Friday when its new flagship Galaxy S7 models go on sale.

Subscribers who use one of Galaxy S7 models for 12 months can switch to a new Galaxy phone while being exempt from monthly fees of the remaining 12 installment payments. Apple has launched a similar program last year. This is part of Samsung's strategy to "lock-in" existing Galaxy users for a longer period.

Galaxy Club subscribers would pay a monthly fee of 7,700 won (6.35 U.S. dollars) in addition to the cost of the device in a 24-month installment plan. They can upgrade to a new Galaxy S or Galaxy Note smartphone after 12 months under the plan and be exempt from paying the remaining 12 months of installment payments. For a 32 GB Galaxy S7, subscribers will pay a total of 45,000 won (37 dollars) a month including the cost of the device, subscription fee and installment interest.

Subscribers who want to switch to a new phone after a year have to return the original device they purchased. Customers buying Galaxy S7 or Galaxy S7 Edge at Samsung Digital Plaza by May 31 can subscribe to the scheme. Samsung Electronics is currently having talks with mobile service operators to enable customers subscribe to the plan at their stores, too.

Subscribers can receive various additional services. When they visit service centers they get faster service, get a 50 percent discount for screen repair for up to two times, while also eligible for checkup of devices, software upgrade and cleaning services.

Major mobile operator SK Telecom said Wednesday that it partnered with Samsung Card to launch "Galaxy S7 Card" (T Samsung Card 2), which enables a discount of up to 480,000 won (496 dollars) when purchasing one of the two newest Galaxy S models. Customers who have purchase record of more than 300,000 won in the prior month can get a discount of 360,000 won (296 dollars) from the original installment cost, while people who used the credit card for more than 700,000 won (576 dollars) can get a 480,000 won (496 dollars) discount.

김지현기자 jhk85@donga.com · 곽도영 now@donga.com