Sales of budget handsets in South Korea are continuing to gain popularity, data showed Wednesday, as consumers seek cheaper options following the government's regulations on discounts for high-end models.
  

Out of total smartphone sales, the portion of budget handsets, priced 500,000 won ($433.3) and below, came to 34 percent in the January-October period, up from the around 20 percent posted a year earlier, the data compiled by the Ministry of Science, ICT, and Future Planning showed.
  

Industry watchers said the rising presence of budget models in the market followed a law implemented in October 2014 aimed at curbing the amount of discounts mobile carriers can give buyers.
  

The move was introduced to limit mobile carriers from rolling out excessive subsidies to win over each others' subscribers.
  

The amount of subsidies had varied depending on time, shop, location and carrier, leaving customers to hunt on their own for cheaper devices and subscription plans, as well as negotiating the price, which was usually unmarked.
  

"After the implementation of the new system, mobile carriers are no longer fighting over discounts but over price competitiveness of their services," a ministry official said.
 

South Korea's telecom firms and tech manufacturers also have been making efforts to supply more budget models in line with the trend.
  

Last week, the country's top handset maker Samsung Electronics Co. said it plans to release the J7 smartphone at home through No. 2 carrier KT Corp. with a price tag of around 300,000 won.
  

Earlier this year, lesser-known tech brand TG&Co. kicked off the LUNA smartphone through SK Telecom Co. also with a similar price, which has enjoyed high popularity. (Yonhap)