Too big to back: Samsung’s expensive Z TriFold stuck in insurance limbo

The Samsung Electronics three-panel Galaxy Z TriFold has the company as well as insurers and consumers scrambling to figure out what an appropriate insurance premium should be for a smartphone priced in the mid–3 million won range.

Visitors try out the Galaxy Z TriFold during Samsung Electronics’ Galaxy Z Trifold launch media day event at Samsung Gangnam in southern Seoul on Dec. 2. [YONHAP]

With Samsung Electronics set to release its three-panel Galaxy Z TriFold on Dec. 12, the company as well as insurers and consumers are scrambling to figure out what an appropriate insurance premium should be for a smartphone priced in the mid–3 million won ($2,040) range.

As Korea sees its first smartphone priced at more than 3.5 million won, some predict that users may not be able to purchase insurance for the device at all.

Samsung has yet to decide whether the TriFold will be eligible for Samsung Care Plus, its subscription-based insurance program, as of Thursday. With the official launch just a week away, the company has not been able to finalize the product design with partner insurers because the device’s factory price is unusually high.

Samsung Care Plus is a monthly subscription service under which Samsung signs a group insurance contract with Samsung Fire & Marine Insurance, KB Insurance and Hanwha General Insurance to provide compensation for damage or loss of enrolled smartphones.

Premiums differ by device, and compensation for loss varies based on factory price. Between 70 and 85 percent of repair costs are covered. For example, users of the Galaxy Z Fold 7 who subscribe to the 13,600 won monthly plan only pay 30 percent of the retail price to receive a replacement if their phone is lost, and pay about 290,000 won — 30 percent of a 960,000 won repair — if the inner or outer display is damaged.

The challenge is that the TriFold’s higher retail price dramatically increases potential compensation amounts. Priced at 3,590,400 won, the TriFold far surpasses the previous high-price model, the 1TB version of the Z Fold 7 at 2.93 million won. Given that foldable phones typically require replacing the entire inner and outer display — as well as the hinge — after a drop, the TriFold’s repair costs could reach 2 million won.

Samsung Electronics is considering excluding the TriFold from Samsung Care Plus entirely. The company worries that poorly calibrated premiums or compensation levels could result in significant losses.

Visitors try out the Galaxy Z TriFold during Samsung Electronics’ Galaxy Z Trifold launch media day event at Samsung Gangnam in southern Seoul on Dec. 2. [YONHAP]

Some retail locations have already begun telling customers that the TriFold will not be eligible for Samsung Care Plus, creating confusion. “We received instructions that Samsung Care Plus cannot be offered for the TriFold, and we are informing customers who ask about it,” said an employee at a Samsung Store in Seoul.

The TriFold has already been excluded from the New Galaxy AI Subscription Club, which Samsung introduced in January. Under the program, customers who return their smartphones after using them for one year receive 50 percent of the original price back, and Samsung Care Plus is included during the subscription period. At the time of launch, Samsung promoted the program as offering “the effect of buying the latest Galaxy smartphone at half price.”

Insurance options are limited for the TriFold. Because the device is sold only as an unlocked model, carrier-issued insurance plans are difficult to access. The only practical alternative is Kakao Pay Insurance’s mobile phone insurance, but the company says that the TriFold’s high retail price makes it incompatible with the current structure of its product.

“If there is sufficient user demand, we will review adding coverage,” a Kakao Pay spokesperson said. “But we would need to revise policy limits to accommodate the TriFold’s eligibility requirements.”

“We are providing one-time support that covers 50 percent of repairs for display damage for TriFold buyers,” said a Samsung Electronics spokesperson, adding that “because it is a special-edition product, the subscription club is not available, and we are reviewing several options regarding Samsung Care Plus coverage.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY LEE GA-RAM [kim.minyoung5@joongang.co.kr]