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Samsung to compensate suppliers over Note 7 disaster

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By Euronews
Samsung to compensate suppliers over Note 7 disaster

Samsung is trying to keep its component suppliers sweet over the Galaxy Note 7 disaster.

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.

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.