Used Galaxy smartphones can receive up to a 50 percent refund with the New Galaxy AI Subscription Club, launching Friday, Samsung Electronics Co. announced on Sunday.

The service is available for those purchasing the Galaxy S25 series that will be unveiled later this month. It targets users of mobile virtual network operators (MVNOs), commonly known as budget phone users who mainly rely on self-purchased devices.

Subscribers can return their smartphones after 12 months for a 50 percent refund based on Samsung.com’s price, or after 24 months for a 40 percent refund.

“With the up-to-50 percent value guarantee, consumers can essentially purchase the latest Galaxy smartphone at half price,” Samsung said. The refund applies when the device is returned within two months after the subscription ends.

The subscription costs 5,900 won ($4.04) per month and can be paid through Samsung Card.

Samsung Electronics has also relaxed its return criteria.

In addition to non-functioning devices, exterior damage, and failure to delete accounts, smartphones with scratches can be returned.

There is no requirement to repurchase a new device, and if a customer opts not to buy another, Samsung will refund the benefit amount in cash.

The company also offers the Samsung Care Plus extended warranty program, covering device damage, repair discounts, on-site repair services, and battery replacements. Discounts on mobile accessories, such as smartphone cases and battery packs, are also available.

“The New Galaxy AI Subscription Club is designed to let consumers enjoy the latest Galaxy products every year at an affordable price, changing the purchasing paradigm for mobile products just as we did with home appliances,” said Executive Vice President Lim Seong-taek.

Samsung’s smartphone subscription service responds to the growing MVNO market in Korea.

According to the Ministry of Science and ICT, MVNO subscribers totaled 9.53 million as of November, representing 16.7 percent of the total market. More than 90 percent of these subscribers buy their devices through self-purchase options.

With many MVNO users turning to the used device market, demand for the latest models has slowed.

An industry insider noted that Samsung may face competition from Chinese smartphones entering the market, in addition to the strong presence of Apple Inc.‘s iPhones in the used market.

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