Samsung Elec to compensate Galaxy Note 7 parts suppliers

Dhaka,  Mon,  05 December 2016
Published : 18 Oct 2016, 21:14:43

Samsung Elec to compensate Galaxy Note 7 parts suppliers

SEOUL, Oct 18 (Reuters) : Samsung Electronics Co Ltd said on Tuesday it will compensate component suppliers for the discontinued Galaxy Note 7 smartphones and consider giving them orders for other models to cushion the blow.

The world's top smartphone maker said it would fully pay for unused Note 7 parts that have already been manufactured, compensate suppliers for unfinished components and pay for materials bought to make Note 7 parts.

"Samsung will determine the inventory levels for the partner companies and carry out compensation quickly," the company said in a statement, without elaborating on how much it expected to pay.

The decision comes after some South Korean government and central bank officials voiced concerns about the potential impact of the Note 7 crisis on the domestic economy. A deputy finance minister said the fallout could hurt the economy during the third and fourth quarters of the year.

Though most of Samsung's smartphones are manufactured overseas, the company is a key customer for many South Korean parts makers including Samsung Electronics affiliate Samsung Electro-Mechanics Co Ltd.
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