Galaxy Note 7 recall: Samsung will still pay for unused parts to save South Korean economy

Samsung’s issue with the exploding Galaxy Note 7 units is far from its end. In another move that will cost the company millions, the Korean tech giant will reportedly pay suppliers that still have stocks of parts that should have made it onto the device.

On Tuesday, Samsung Electronics Co Ltd announced that it will compensate suppliers for the recalled and discontinued Galaxy Note 7 devices. The company, according to Reuters, will apparently pay for the unused parts in full. Furthermore, the tech giant will take the responsibility of determining inventory and the corresponding prices.

"Samsung will determine the inventory levels for the partner companies and carry out compensation quickly," it said in a statement. Exactly how the process will move forward, however, was undisclosed.

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Samsung’s decision to still purchase the unused parts stems from pressure given by the South Korean government and its central bank. The two agencies were worried that the discontinuation of the Galaxy Note 7 would greatly hurt the country’s economic standing for the third and fourth quarters of 2016.

Most of the manufacturing of Samsung’s products are done outside of its home country. However, the parts are still built within South Korea. If Samsung opted not to purchase these parts anymore, it would significantly hurt the domestic market.

READ: Samsung’s financial losses due to halted sale of exploding Galaxy Note 7 could reach $17 billion

Once hailed the best smartphone of 2016, the Galaxy Note 7 was officially discontinued last week after reports of replacement units exploding started to surface online. The choice to permanently recall the units will reportedly cost the company US$5.5 billion (AU$7.17 billion) in operating profit -- a number that would have carried on from the third quarter of 2016 until the first quarter of 2017.