Samsung shares are being hammered over the recall of the Galaxy Note 7

Koh Dong-Jin, president of Samsung Electronics Mobile Communications Business, announcing the suspension of sales of the Galaxy Note 7. Kim Hong-Ji/AFP/Getty Images

Shares in Samsung Electronics were dropping hard on the back of the recall of its new smartphone Galaxy Note 7.

A short time ago, the shares were down 5.4% to 1.49 million won ($A1780). Billions were wiped from the company’s market cap on Friday.

The company last week told Galaxy Note 7 users to return their devices after faulty batteries caused the smartphone to catch fire.

There are about 2.5 million of the waterproof phones.

Airlines, including Qantas, have banned the charging of the Galaxy Note 7 on aircraft.