Woori Bank to offer discount phone plans with LG U+

Woori Bank CEO Cho Byung-Kyu, left, and LG U+ CEO Hwang Hyeon-sik pose for a photo after agreeing to collaborate in the mobile virtual network operator (MVNO) business. [WOORI BANK]

Woori Bank will venture into the growing discount phone plan sector through a new partnership with LG U+.

The bank and Korea’s third-largest mobile carrier signed a partnership to collaborate in the mobile virtual network operator (MVNO) sector. MVNOs lease capacity from carriers and offer low-cost telecommunication service.

The two parties will jointly develop budget phone plans and collaborative business models, as well as the infrastructure and service required for the launch of the service.

MVNOs offer phone plans much more affordable than those provided by major players like SK Telecom and KT and have consequently grown quite popular among the younger generation.

Some 8.7 million people were on MVNO plans by the end of last year, up 19.9 percent over a year ago.

“Collaboration between wireless communications and financial [firms] has become essential as financial transactions based on smartphones have been increasing,” said Woori Bank CEO Cho Byung-Kyu.

Domestic banks are entering the segment in an effort to promote their apps to customers and gather more user data. KB Kookmin Bank established an MVNO business with the brand dubbed Liiv M in 2019.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]