Galaxy S25 free phone wiggles, subsidy war may start in July

The beginning of the subsidy war with the Galaxy S25

The telecommunications market is shaking once again. With the Galaxy S25 being released as a 'free phone', the competition for device subsidies is reigniting. Some retailers are even offering transportation costs to attract subscribers, and there is a clear strategy being pursued to maximize consumer influx through this. The subsidy policies related to device purchases have long been at the center of controversy among telecommunications companies. The Device Distribution Structure Improvement Act, also known as the 'subsidy law', introduced in 2014, was a system aimed at enhancing the transparency and fairness of subsidies. However, recent criticisms of its effectiveness and movements for revision have rapidly changed the situation. The controversy surrounding the Galaxy S25 free phone is seen as a market reaction triggered by these changes and is regarded as the prelude to the anticipated subsidy war in July.

Current Status and Changes in the Subsidy Market

The telecommunications market in the first half of 2025 is evolving in a way that is completely different from previous years. SK Telecom, which had suspended new subscriptions for over 50 days due to a SIM card hacking incident, has recently resumed operations and is launching a major effort to attract new subscribers. At the center of this effort is the Galaxy S25 subsidy strategy. Currently, SK Telecom is offering the Galaxy S25 256GB model for free, with a retail price of around 1.15 million won, and some retailers are even providing an additional cash incentive of 150,000 won under a number portability condition. This situation goes beyond a simple subsidy competition and is, in fact, approaching the nature of reverse subsidies. KT and LG Uplus are also actively increasing their subsidies in response, and there have been instances where some stores are offering device discounts exceeding 1 million won without requiring any plan maintenance conditions. This atmosphere is intertwined with the substantial weakening of the Device Distribution Structure Improvement Act. The scale of incentives proposed by the three major telecom companies is increasing, and a structure has begun to establish where this is directly passed on to consumers by agencies and retailers.

The reality of "free phones" and consumer vigilance

The term 'free phone' that appears on the surface acts as a strong temptation for consumers. The Galaxy S25 is advertised as being provided for free, and some stores even promote cash payments. However, there are various underlying conditions. The conditions presented by SK Telecom require maintaining a plan worth 109,000 won per month for at least six months, and there may be additional stipulations regarding the subscription or cancellation of supplementary services. Furthermore, customers may have to wait an average of one to two weeks for activation, which is information not specified in the marketing process. If one is misled by the term 'free', they may end up paying expensive communication fees for a long time, or face restrictions on switching operators due to cancellation fees. Additionally, some retailers engage in illegal subsidies or fraudulent activations, and there have been reports of consumer complaints regarding unregistered devices or unreceived cash benefits post-activation. To genuinely enjoy 'free' benefits, consumers must carefully check specific conditions such as device price, subsidy payment methods, plan maintenance conditions, activation delays, and timing of cash benefits. It is important to recognize that in cases of illegal subsidies or false contracts, it may be difficult to receive compensation for damages due to retailer closures or communication companies evading responsibility.

July market battle forecast

The competition for subsidies among telecom companies tends to intensify around the launch of new flagship devices. July is expected to be the time when the Galaxy Z Fold 7 and Z Flip 7 are announced, and as such, there is a high possibility that strategies to clear out existing inventory of the S25 model will be put into full swing. In fact, major distribution channels have been actively running marketing promotions targeting the Galaxy S25 since the end of June, which is seen as a precursor to the subsidy competition in July. According to industry analysis, incentives paid to the device distribution channels of SK Telecom are estimated to exceed one million won, the highest figure since the introduction of the Mobile Device Distribution Act. KT and LG Uplus are also responding by raising their sales incentives, and some channels have been confirmed to employ aggressive marketing that combines illegal subsidies with official ones. While this intensified competition may seem to increase consumer benefits in the short term, in the long term, it could lead to side effects such as increased service fees, non-cancellation of contracts, and mandatory subscriptions to additional services. Particularly in times when excessive incentives are injected, there is a possibility that it could lead to distorted distribution structures, price distortions, and an increase in investigations into illegal subsidies, sparking another regulatory debate.

The Truth of the Subsidy War and the Balance of Consumer Choice

The controversy surrounding the Galaxy S25 free phone is not merely a marketing event. It is a phenomenon that arises from the intersection of the structural limitations of the communication subsidy system, the direction of government regulations, and changes in the market. As the competition for subsidies intensifies, telecommunications companies' marketing strategies are becoming more complex and sophisticated, requiring consumers to possess the capability to interpret and judge this correctly. July could certainly be a turning point for the communications market. It marks the period when the peak of subsidy competition is formed, and it serves as a test to gauge how practical consumer benefits will be implemented following the revision of the price containment law. At this stage, what is most important for consumers is to compare conditions, review contracts, and evaluate the actual benefits of subsidies. The subsidy war in the telecommunications market is not merely a matter of one device it involves a complex structure intertwined with marketing budgets worth billions and government regulatory policies, as well as consumer rights. Understanding the specific benefits that the Galaxy S25 free phone entails and precisely grasping its reality will be the first step for consumers to act independently within this structure. Ultimately, the winner of this war will not be the consumer who received the most subsidies but the one who chose the conditions most wisely. The telecommunications market in July is a period where consumer judgment is as important as the numbers of subsidies. Now, more than ever, it is a time that demands careful and proactive information searching.