The Galaxy Note 7 fiasco is likely to have a negative impact on South Korea's GDP
The report, quoting an unnamed finance ministry from the country, says that Samsung's decision to kill off the Galaxy Note 7 is estimated to have erased somewhere between 0.1 and 0.2 percent from South Korea's GDP quarter-on-quarter growth in Q3.
The news comes on the heels of a recent statement from the Bank of Korea, which estimated a Q3 GDP growth of 0.7 percentage points compared to the previous quarter.
In the past few weeks, we came to know just how big of an impact the Galaxy Note 7 conundrum has had on Samsung's financial wellbeing. Soon after issuing the second Galaxy Note 7 recall, Samsung slashed its Q3 profit estimated by $2.3 billion and nearly halved its revenue estimate to $43.5 billion. As if that wasn't enough, reports argue that Samsung may put a lot of R&D projects on the backburner because of Note 7. Also, a recent report from the WSJ claimed that Samsung may also delay the launch of the Galaxy S8.
It looks like the Note 7 recall and the decision to scrap the handset entirely spelled trouble not only for Samsung but for the entire South Korean economy. As a side comment, this highlights the weight that Samsung bears for the South Korean economy. Unfortunately for the entire nation of South Korea, however, it looks like the cause behind the Note 7 explosions remains unknown despite the fact that Samsung is allocating a lot of resources to identify the root of the problem.
This story is part of:The explosive Galaxy Note 7 saga (140 updates)
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8 November Samsung Canada will exchange Galaxy Note 7s, bought from a third-party
3 November Samsung promises to work hard towards regaining consumer trust
3 November Samsung promises to get rid of its Galaxy Note 7 stockpiles with minimal damage to the environment
1 November Chinese customers outraged after Samsung execs kneeled to apologize for the Galaxy Note 7 fiasco