Samsung is to help its component suppliers hit by the canceling of the Galaxy Note 7 with compensation for unused parts and unfinished components.
Samsung is trying to keep its component suppliers sweet over the Galaxy Note 7 disaster.
Samsung will determine the inventory levels for the partner companies and carry out compensation quickly
It will pay those companies in full for unused Note 7 parts that have already been manufactured, it will also compensate the suppliers for unfinished components and pay for materials bought to make parts for the now discontinued fire-prone phone.
“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.
It will also consider giving them orders for other models.
(LEAD) Samsung to pay full compensation to suppliers of Note 7 parts https://t.co/ABALIbzqF6— Yonhap News Agency (@YonhapNews) October 18, 2016
This comes after some government and central bank officials voiced concerns about the potential impact on South Korean’s 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.