Samsung Electronics on Wednesday confirmed plans to launch a phone upgrade program in South Korea this week. The plan will allow subscribers to switch to a new handset every 12 months. The company's two Galaxy S7 models go on sale starting Friday. Korean consumers could sign up for the program on a 24-month installment plan offered through Samsung Card, Samsung Electronics said.

Subscribers would pay a monthly fee of 7,700 won ($6.35) in addition to the cost of the device. They can upgrade to a new Galaxy S or Galaxy Note smartphone after 12 months under the plan in exchange for the original device they purchased.

Apple launched a similar program in the United States last year.

Samsung has launched an upgrade program in the United Kingdom but has not confirmed whether if it could be expanded to other markets.

Samsung will also offer 20 percent discounts to early buyers of its new models – the Galaxy S7 and Galaxy S7 Edge – in China. China will be the first market for Samsung to offer discounts on the Galaxy S7 series before the launch of the Galaxy models.

In the Chinese market, the Galaxy S7 (32 GB) and the Galaxy S7 Edge (32 GB) were priced at 4,888 yuan and 5,688 yuan, respectively.

Although Samsung had enjoyed ranking first in the Chinese smartphone market since 2011, the company fell below fifth place as Chinese makers such as Xiaomi, Huawei and Apple armed with the iPhone 6 overtook Samsung Electronics last year.