Samsung will start selling a refurbished version of its Galaxy Note 7 smartphone this week after an embarrassing recall over exploding batteries rocked the tech giant last year.

The recall of millions of Galaxy Note 7 devices cost the world's largest smartphone maker billions of dollars in lost profits and hammered its global reputation.

The refurbished device, made of recalled, unsealed Note 7 handsets and unused components are outfitted with new batteries, Samsung said in a statement.

The limited-edition phone - the Galaxy Note Fan Edition (FE) - will hit shelves in South Korea on July 7, Samsung said, adding it would only sell 400,000 units at home.