In Korea, phones can be bought by either paying the full cost of the phone all at once, or, more commonly, over an installment plan ("할부", in Korean).
The benefit of buying a phone over an installment plan is that there is no interest, and it's a lot less of a financial burden.
For example: (All prices shown without VAT)
The list price for an iPhone 4S, 16GB model is 740,000 KRW.
Divided over a 24-month installment plan, the installment payments would be:
Though this price may seem high compared to what an iPhone costs overseas, when you sign up with a rate plan (such as Smart Sponsor), you receive a monthly discount off your rate plan, which works as follows.
If you select the i-Medium rate plan (64,000 KRW per month), you will receive a discount of 20,000 KRW per month for the 1st year, then 22,000 KRW for the 2nd year.
So at the end of two years,
| iPhone 4
||First year's discount
||Second year's discount
||Actual price of the phone |
So if you bought an iPhone 4, 16GB, with the "i-Medium" rate plan, you would pay 236,000 KRW for the phone, and the 65,000 KRW per month for the rate plan.
To sum up, this is how your pricing will go:
740,000 / 24 months = 30,833 KRW per month (for the phone)
64,000 KRW per month (for your rate plan)
-20,000 KRW per month (Smart Sponsor rate plan discount)
74,833 KRW per month (VAT not included)
This is only one of the possible scenarios. Depending on the phone you choose, the duration of your installment plan, and rate plan you choose, you may find that the actual cost of the phone may lower, or even become free.
And because the discount is given regardless of whether you buy your phone on an installment, customers who do not qualify for installment plans will still get the same discounts as those who do purchase on installment plans!
There are some restrictions to who is eligible to purchase a phone over an installment plan. Contact our foreign language customer call center at 1583 (toll-free from any kt mobile phone), or 02-2190-1180 from any other phone with questions about installment plans.