Wireless Mobile Banking Technology in Korea

LG Electronics Inc. Korea released a new mobile phone that supports wireless banking transactions. LG Electronics has sold about 20 phones with mobile banking capabilities since 2003.

This new model however integrates with a fingerprint identification scanner to enhance security. The company hopes to capitalize on the growing interest in mobile banking.

The LG-LP3550 is also integrated with a 2.2-inch liquid-crystal display, 3-megapixel digital camera and a built-in stereo. The phone will be offered to customers of LG Telecom Ltd., Korea's smallest mobile carrier with a price tag between $650-700.

Joh Seong-ha, vice president of LG Electronics' mobile communications division notes
"With more people using mobile phones for financial transactions and other enhanced services, the worries over the protection of personal information is increasing. We expect to continue to deliver phones with enhanced security features, which is now an important point in competition,"
and sold more than 1.55 million units as of March, about 32 percent of the market segment during the period, according to company officials.

Interstingly, Korea's wireless penetration rate is now approaching 75 percent. This means electronics makers and telecom carriers are competing to deliver enhanced products and data services to generate revenue in a saturated voice market.

As for banking , Industry watchers expect the country's mobile banking customers to number 3 million by the end of the year, after first exceeding the 1 million mark in 2004. Mobile banking transactions totaled 3.6 trillion won in the fourth quarter last year, up 34.1 percent from the previous quarter, with the country's three mobile carriers expanding their partnerships with domestic banks.

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