By Kim Bo-eun
KB Kookmin Bank is set to launch a "budget phone" business as early as September, the bank said Sunday.
Budget phone offer low-cost plans, currently between the range of 5,000 won and 35,000 won a month. About 8 million people own budget phones, or 12 percent of the mobile phone market
The financial authorities began allowing banks to rent network space from mobile carriers to offer telecommunications services from April.
Kookmin Bank is in discussion with LG Uplus to use the mobile carrier's network to launch the service.
"Our plan is to expand our customer base, by enabling them easier access to KB affiliates with the phones," a Kookmin Bank official said.
"We also plan on offering our customers benefits in telecommunications services," he said.
KB Financial Group has seven affiliates including the bank, brokerage, non-life insurer, card issuer, life insurer, capital firm and savings bank. The bank official said purchasers of a Kookmin budget phone will get a USIM chip that will enable them to skip existing verification processes when accessing financial services.
The bank is expected to enable users to get discounts on phone bills for using Kookmin's services.
While the Kookmin Bank official declined to elaborate, the bank is expected to target young mobile phone users, to secure more young customers for KB.
Currently, the majority of budget phone users are elderly.
Kookmin may seek to offer unlimited data plans in order to attract young customers, and it may offer 5G services.
However, the bank official said the purpose of the budget phone initiative was to provide affordable plans, and that offering 5G would likely bring up costs.
Currently, none of the budget phones on the market offer 5G services.
Meanwhile, mobile carriers' attention is growing over the impact of Kookmin joining the budget phone market.
LG Uplus' plan to acquire CJ Hello, the smallest mobile carrier handling budget phones, is set to affect the market.
Kookmin has shown continued interest in the telecommunications sector. In 2003, Kookmin enabled a chip-embedded mobile phone incorporating the LG Uplus predecessor LG Telecom's telecommunications service to provide users access to Kookmin Bank accounts, and enable them to transfer funds.
Last year, it introduced a financial services-specialized smartphone, with Samsung Electronics and mobile carrier SKT.
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| KB Financial Group Chairman Yoon Jong-kyoo |
Budget phone offer low-cost plans, currently between the range of 5,000 won and 35,000 won a month. About 8 million people own budget phones, or 12 percent of the mobile phone market
The financial authorities began allowing banks to rent network space from mobile carriers to offer telecommunications services from April.
Kookmin Bank is in discussion with LG Uplus to use the mobile carrier's network to launch the service.
"Our plan is to expand our customer base, by enabling them easier access to KB affiliates with the phones," a Kookmin Bank official said.
"We also plan on offering our customers benefits in telecommunications services," he said.
KB Financial Group has seven affiliates including the bank, brokerage, non-life insurer, card issuer, life insurer, capital firm and savings bank. The bank official said purchasers of a Kookmin budget phone will get a USIM chip that will enable them to skip existing verification processes when accessing financial services.
The bank is expected to enable users to get discounts on phone bills for using Kookmin's services.
While the Kookmin Bank official declined to elaborate, the bank is expected to target young mobile phone users, to secure more young customers for KB.
Currently, the majority of budget phone users are elderly.
Kookmin may seek to offer unlimited data plans in order to attract young customers, and it may offer 5G services.
However, the bank official said the purpose of the budget phone initiative was to provide affordable plans, and that offering 5G would likely bring up costs.
Currently, none of the budget phones on the market offer 5G services.
Meanwhile, mobile carriers' attention is growing over the impact of Kookmin joining the budget phone market.
LG Uplus' plan to acquire CJ Hello, the smallest mobile carrier handling budget phones, is set to affect the market.
Kookmin has shown continued interest in the telecommunications sector. In 2003, Kookmin enabled a chip-embedded mobile phone incorporating the LG Uplus predecessor LG Telecom's telecommunications service to provide users access to Kookmin Bank accounts, and enable them to transfer funds.
Last year, it introduced a financial services-specialized smartphone, with Samsung Electronics and mobile carrier SKT.





































