[THE INVESTOR] Daishin Securities said on Sept. 8 it expects Samsung Electronics’ recent decision to recall its Galaxy Note 7 to cost between 700 billion won (US$639.97 million) to 1.2 trillion won.

Daishin said given the 31.2 trillion won consensus for the electronic giant’s annual operating profit this year, the recall costs would slash the firm’s profit by 4.8 percent.

Local brokerages have been issuing forecasts on the damages that the recall would cost Samsung.

Samsung on Sept. 2 issued a global recall of 2.5 million Note 7 phones following several reports on battery explosions. In Korea, the recall starts on Sept. 19 when customers can start exchanging their phones for new handsets. Recalls in markets such as the US have already started.

By Kim Ji-hyun (jemmie@heraldcorp.com)