Samsung Electronics and LG Electronics are getting ready to release new midrange handsets in the domestic market to cope with a recent drop in sales, industry sources said Sunday.

The move comes after the government banned certain discounts with the enactment of the Terminal Distribution Structure Improvement Act in September. The law aims to correct perceived distortions in the market caused by carriers that only offer discounts on flagship devices at the expense of lower-end phones.

The law, however, has inadvertently led to people holding back on buying newer flagship phones.

The number of buyers of used phones surged 77.9 percent in the first 14 days of last month compared to the month before, industry data showed.

The last time Samsung, the world’s largest handset maker, released a midrange smartphone in South Korea was in January when it unveiled the Grand 2. LG’s last midrange phone launch in the domestic market was the G3 Beat in July.

Industry watchers said LG has asked mobile carriers to carry out a net compatibility test on a device that may have a sticker price of 400,000-600,000 won ($375-563). With authorized subsidies, the phone will be sold for around 300,000 won. (Yonhap)