As a result the crisis on the Galaxy Note 7 smartphones, Samsung Electronics has announced that it would compensate affected suppliers.
The Electronic giants announced last week that it will recall all of Note 7 phones after a chaotic period. The crisis cost the company an estimated $5.3 billion in lost profits over the three quarters beginning July.
The crisis also hit its numerous suppliers who produce everything from camera modules to casings — with their losses estimated at up to $1.7 billion.
The firm said in a statement that it would offer full compensation for remaining inventories of Note 7 components among suppliers.
“We feel sorry for causing concern among our suppliers due to discontinuation of the Galaxy Note 7. We will complete the compensation quickly to minimise difficulty faced by them.”
No specific figures was given but it said the payout would be calculated according to the inventory volumes of different suppliers.
The Note 7 debacle has had a national impact in Korea giving the company’s stature. It accounts for around 17% of the total GDP of Asia’s fourth largest economy.
The Central Bank of Korea said it had taken the crisis into consideration when it trimmed South Korea’s 2017 growth outlook to 2.8 percent last week from its previous 2.9 percent forecast.