With Samsung accounting for around 17 percent of South Korea's gross domestic product, such a major business reversal is likely to have a national impact, Bank of Korea Governor Lee Ju-Yeol said.
Unable to replicate the problem, and with reports of flaming devices mounting up, Samsung initially concluded the problem was with some of the phones' batteries, blaming a "minor manufacturing flaw" at its affiliate Samsung SDI. It is also said that Samsung will be opting for ground shipping, thus reducing the risk of the phone exploding mid-flight.
The top-of-the-line Note 7 was crucial to Samsung's growth plans this year, with the company struggling to boost sales, squeezed by Apple in the high-end sector and Chinese rivals in the low-end.
Users may replace their recalled phones with other models of Samsung's smartphones or get a full refund, China's General Administration of Quality Supervision, Inspection and Quarantine said on its website. South Korea's KOSPI Index dropped by 1.21 percent.
Domestic demand for high-end Chinese smartphones could get a big boost after Samsung Electronics Co made a decision to recall all 190,984 Galaxy Note 7 phones that it has sold on the Chinese mainland, analysts said.
A customer tries out a Samsung Electronics' Galaxy Note 7 at the company's headquarters in Seoul, South Korea, October 10, 2016.
"It's a very critical moment for Samsung", said Martin Roll, the author of "Asian Brand Strategy". Even now - more than a month after the first reports of issues with Note 7 devices surfaced and with the phone out of production - the New York Times says the company doesn't know why its phones are spontaneously combusting, despite deploying hundreds of employees to work on the problem.
Walgreens Boots Alliance, Inc.'s (WBA)
After the day began at $45.95, the company was seen hitting $46.52 as its intraday high price and $45.95 as its bottom price. BlackRock Institutional Trust Company N.A. boosted its position in Walgreens Boots Alliance by 0.7% in the second quarter.
Odell Beckham Jr. looks to turn the page in Week 5
Pugh said the only distraction he feels relating to Beckham is constantly being asked questions about the receiver's behavior. Since he is 31 games into his National Football League career (a game shy of two full seasons), OBJ is a work in progress.