By Lee Min-hyung



Samsung Electronics is suffering setbacks over growing numbers of so-called black consumers, mostly in the United States and Korea, making false reports of their devices catching fire, even after the company has officially started to replace Note 7 handsets with new ones due to a battery problem. In Korea, black consumers refer to those who dishonestly seeking reparations for what they allege are faulty goods.



Samsung Electronics America announced Wednesday that more than 500,000 new Note 7 replacement smartphones have arrived and are available for exchange at mobile carriers and retail stores there. In Korea, the company began the Note 7 exchange program Monday.



Korea and the U.S. are the firm's two biggest smartphone markets. Samsung Electronics said it will soon expand the recall to 11 other countries where the Note 7 has been available since its release last month.



Despite the responsive measure, the company still faces a growing dilemma over the unceasing reports of the 5.7-inch handset catching fire while being charged.



As of Thursday, the company said it has received a total of 26 false reports, including nine from the U.S. and three in Korea. Samsung has contacted those who claimed that their Note 7s had caught fire, but failed to secure the devices in the 26 cases.



Critics argue this comes as some dishonest consumers, especially from other countries, are making false claims intentionally to tarnish the firm's brand at a time when the company is enjoying its heyday as the world's largest smartphone manufacturer by shipments.



"Dishonest consumers will take advantage of the latest scandal, but it won't be easy as Samsung is expected to conduct a thorough inspection to verify any false claims in collaboration with other industries ― including insurance firms," said an electronics industry official, asking not to be named.



"In the electronics industry, the decision to recall all devices is a very rare case. Normally, company officials collect defective products and thoroughly inspect what was wrong. They then decide whether to offer a refund or repairs. Samsung has decided to recall all the handsets regardless of whether they have faults or not, but the company will not offer full compensation for customers that file false reports," said the source.



The U.S. subsidiary of Samsung Electronics announced it will collaborate with the U.S. Consumer Product Safety Commission (CPSC) to prevent further fires in the Note 7.



Samsung Electronics America President Tim Baxter said in the regional subsidiary's official public relations office: "We will continue to take the necessary actions to ensure users are powering down and immediately exchanging recalled devices."



