[THE INVESTOR] Samsung Electronics is recalling about 1 million units of its Galaxy Note 7 smartphone sold globally after a series of reports on battery explosions since its launch on Aug. 19.

The company said all the phones will be exchanged with new ones regardless of battery functions. Considering inventories, the recall will affect some 2.5 million Note phones produced, it added. 

“We have concluded that defective battery cells have caused the recent explosions. Among 1 million units sold, 24 have been found to have faulty batteries,” said the company’s mobile chief Koh Dong-jin at a press conference held in Seoul on Sept. 2.

“Even though our investigation is ongoing, we have decided to exchange all the phones considering growing safety concerns among customers,” he said.

Samsung has suspended shipments of the big-screen Note phone since early this week after several reports in Korea and abroad claiming that the phone exploded while charging. No injuries have been reported.

The recall is expected to start from Sept. 19 in 10 countries, including Korea and the US.

In Korea alone, some 400,000 preorders have been made.

Koh declined to reveal the cost of the planned recall, saying: “It is a huge amount. But we have decided to do so for the safety of our customers.”

Considering the retail price of Korea at 988,900 won (US$881), the company is recalling an estimated 2.5 trillion won (US$2.2 billion) of Note phones.

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