Around 9 million used smartphones were sold in South Korea last year, accounting for about 72% of the 12.53 million new devices distributed to domestic retailers. This means that for every 10 new smartphones sold, over seven pre-owned ones were also purchased. In 2021, sales of used phones stood at just 6.8 million, or 40% of the 16.89 million new units shipped. In just three years, demand for refurbished smartphones has surged, while sales of brand-new models have declined.
The growing demand for second-hand smartphones is largely due to rising prices, with new models approaching 2 million won, and economic uncertainty pushing consumers toward cheaper alternatives. Another key factor is that software updates now allow older devices to support AI-powered features that were once exclusive to the latest releases.
As the used phone market expands, major players are stepping in. Once dominated by second-hand trading platforms and small businesses, the market now includes Samsung as a competitor. “With demand for new smartphones declining, Samsung is turning its attention to the second-hand device business,” a telecom industry insider explained.
Samsung on March 31 began selling certified re-newed smartphones. It is offering returned and refurbished Galaxy S24 units—sent back simply due to a change of mind—at discounts of up to 640,000 won compared to new models. Previously, Samsung discarded returned devices, but it has now changed its policy. The company is also expanding its role in the refurbished phone market. In January, it launched two programs: Galaxy Trade-In, which buys back older Galaxy models, evaluates their condition, and offers compensation accordingly; and the New Galaxy Club, which lets customers use a Galaxy S25 for one or two years and return it for 40–50% of its original price.
South Korea’s three major telecom companies—SK Telecom, KT, and LG Uplus—originally operated these trade-in programs, with Samsung only assisting in device collection through partnerships. Until now, used Galaxy phones returned or sold by customers were acquired by telecom providers and resold on their platforms. However, starting this year, Samsung has launched its own pre-owned smartphone service and will now sell refurbished devices directly, rather than supplying them to telecom firms. A Samsung official said, “We are considering options such as selling high-quality used smartphones in overseas markets like Southeast Asia.”
Platforms like Karrot and Bungaejangter are also expanding their presence in the used phone market. In January, Karrot introduced a smartphone price check service that uses AI to instantly provide average market prices for pre-owned Galaxy and iPhone models. Naver’s KREAM launched The Phone late last year, a dedicated platform for buying and selling used smartphones.
The three telecom companies are closely monitoring the expanding second-hand phone market but are not making aggressive investments. They rely on bundling high-end service plans with discounted new smartphones for additional revenue, so the rise of the refurbished phone sector could negatively impact their profits.
These mobile carriers do not directly operate their own used phone businesses. SK Telecom sells through Mintit, a subsidiary of SK Networks; KT through KT M&S; and LG Uplus through MediaLog. However, with Samsung ending its partnerships and entering the second-hand smartphone market independently, their pre-owned device operations are likely to face challenges.
