South Korea's economic growth for Q3 has slipped to its lowest level in more than a year, with Samsung's recall of the Galaxy Note 7 having had an impact.
Bank of Korea said on Tuesday that Asia's fourth-largest economy expanded 2.7 percent during the July-September quarter from a year before, the slowest growth since Q2 2015.
Growth from the previous quarter was 0.7 percent and on a quarter-to-quarter basis, the country's economy has grown less than 1 percent in the last year.
According to Korea's central bank, the manufacturing sector declined as a result of slumping handset sales from Samsung's Galaxy Note 7 recall.
Samsung is now offering customers a Galaxy S7 or S7 Edge as a replacement for the Note 7 devices, with the addition of a refund covering the price difference. Alternatively, owners can request a full refund.
The company revealed this week that a Galaxy Note 8 is officially planned for next year, and as part of an upgrade program it will be offered to Korean customers at a discounted price.
The monthly discount of up to 50 percent will be for customers who exchanged their faulty Note 7 for a Galaxy S7 or S7 Edge.
Those who join the Galaxy Upgrade Program, after signing a two-year contract and paying the monthly fee for 12 months, can change their S7 or S7 Edge for a Galaxy S8 or Galaxy Note 8 for free.
Samsung and the South Korean government have launched separate investigations into the exploding Note 7s.
Samsung expects a profit cut of around $3 billion until Q1 2017 with the whole Note 7 saga expected to cost the company nearly $5 billion.
Officials from local telcos have said that Korean sales of Apple's iPhone 7 benefitted from the Note 7 recall, with 200,000 units sold in the country as of Monday, four days since sales began.