Samsung phablet fire fiasco will hurt South Korea

Significance

This followed Samsung's decision to axe its initially much-praised Galaxy Note 7 'phablet' smartphone, launched only in August, after explosions (whose precise cause remains undetermined) affected not only the first handsets but also a supposedly safe replacement model, swiftly introduced after the initial problems. A worldwide return and refund or swap programme began on October 13.

Impacts

• In so highly competitive a sector, Samsung's finances and reputation will take time to recover.
• Longstanding corporate governance concerns will prompt renewed shareholder activism.
• The matter is severe enough to count as another 'crisis' for Park's lame duck administration.