The sharp fall on the Korean stock market comes after United States aviation authorities warned travellers not to turn on or charge the Note 7 during flights or store them in checked bags.
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Samsung Electronics’ common shares were down 6.3 percent to 1,476,000 won each after touching their lowest level since July 12, and were on track for their biggest daily percentage drop in more than four years.
Samsung said it plans replacement shipments of the phone from this week.
The U.S. consumer agency warned consumers on Friday to stop using the phone in response to reports its batteries combusted while charging or in normal use.
A number of Asian airlines have added their name to the growing list refusing to carry new Samsung Galaxy Note 7 smartphones in checked luggage.
According to Linda Lewis, her grandson was using a Galaxy Note 7 to watch videos when the phone caught fire.
GCI issued a statement saying no Galaxy Note7s had been sold yet because the recall occurred when the phones were still on pre-order.
The “exchange program” comes as rival Apple unveiled its new iPhone 7 on Wednesday.
The mobile business accounts for a major share of profits for Samsung, which also produces home appliances and memory chips.
Australian airlines Jetstar, Qantas and Virgin Australia have outright banned passengers from using or recharging the Samsung Galaxy Note 7 for similar reasons.
Following the FAA warning, US-based Delta Air Lines has issued a customer advisory for airline passengers travelling with a Samsung Note 7.
Earlier this month, Samsung announced a recall of 2.5 million Galaxy Note 7s worldwide, just two weeks after the phone was launched.
“We encourage… Note 7 customers to contact their place of purchase or call the designated call centre locally as soon as possible”, said the statement. Samsung plans to provide Galaxy Note 7 devices with new batteries in South Korea starting September 19, but schedules for other countries vary.
Scandinavian Airlines said Saturday that it has prohibited passengers from using the Galaxy Note 7 on its flights because of concerns about fires.
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Those who pre-ordered their phones will have to wait a bit longer but they will have the correct batteries in them.
