Offline mobile shops lose ground despite higher carrier subsidies

Offline mobile phone retailers are fading as more consumers buy unlocked smartphones online, use price-comparison platforms to find transparent deals and sign up for low-cost mobile plans without visiting a store, underscoring a structural shift in the country's smartphone distribution market.

According to data from the National Tax Service, the number of registered mobile phone stores in Seoul fell to 2,965 as of April, down 5.8 percent from 3,149 at the end of 2021.

The figure has declined steadily from 3,091 in 2022 and 2,966 in 2023.

The effective number of operating stores is likely lower than official counts, as dormant and temporarily closed outlets are still counted in the statistics, with some owners keeping their business registrations active while effectively shutting down amid loan repayment pressures and weak customer traffic.

The decline comes as consumers increasingly favor transparent pricing over the traditional practice of negotiating discounts with individual dealers, whose subsidies and contract terms often vary from store to store.

An owner of a mobile phone shop in ...