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The
world's top smartphone maker announced earlier this month a
recall of at least 2.5 million Note 7s across the globe due to
faulty batteries causing some of the phones to catch fire. The
firm is already issuing replacement devices using what it says
are safe batteries in several markets including South Korea and
the United States.
The Korean Agency for Technology and Standards, in a statement,
formally approved the recall plan and said the new batteries
being used are safe.
The agency ordered Samsung to have its supplier conduct x-ray
tests on the batteries prior to shipment. It also ordered
Samsung to carry out inspections on its own as an additional
safeguard and to extend the refund deadline to Sept. 30 from
Sept. 19 previously.
Samsung declined to comment on how many phones are being
recalled in South Korea, but the firm's report to the agency
dated Sept. 2 seen by Reuters showed that 429,000 Note 7 phones
had been sold prior to the recall. The firm said it is in talks
with domestic carriers to offer a 30,000 won ($27.21) mobile
tariff credit to affected customers for their October bill.
The South Korean firm is pushing to get its recall completed as
quickly as possible in order to limit damage to its reputation
and earnings, and resume sales. Some analysts said the recall
could cost Samsung nearly $5 billion in lost revenue.
Samsung, which halted Note 7 sales in countries affected by the
recall, plans to resume new sales of the Note 7 in South Korea
on Sept. 28.
($1 = 1,102.3600 won)
(Reporting by Se Young Lee; Editing by Muralikumar Anantharaman)
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