[THE INVESTOR] Samsung Electronics, upbeat on strong sales of Galaxy S7 phones, has paid hefty incentives, worth 100 percent of salary, to its mobile business division, according to industry sources.

Samsung offers incentives in three different levels -- A for 100 percent, B for 50 percent and C for 37.5 percent. The mobile business division was offered the highest A-level incentives on July 8. 


In its tentative earnings guidance released on July 7, Samsung estimates it will post an operating income of 8.1 trillion won (US$6.9 billion) in the second quarter, a 17 percent jump from a year ago.

Especially the mobile business division that suffered sluggish sales over the past year is expected to have increased operating profits to some 4.5 trillion won, the best profits in two years.

Since its March launch, the phone is estimated to have sold some 26 million units worth about 20 trillion won.

On the day, Samsung’s other two business divisions -- appliances and components -- were also offered the highest-level incentives thanks to their upbeat sales this year.

By Lee Ji-yoon (jylee@heraldcorp.com)