[비즈한국] Woori Bank has officially launched its budget phone (MVNO) business. Having spent a year preparing for the venture, the bank has begun a full-scale customer acquisition drive, complete with various discount promotions. It is particularly focused on capturing the 1020 generation (teens and those in their 20s). All eyes are on whether Woori Bank, having ambitiously entered this new business, will succeed in attracting these potential future customers through its budget phone service.
Woori Bank officially launched its budget phone service, 'Woori WON Mobile,' on April 18. After registering as a period telecommunications operator in March, the bank collaborated with LG Uplus032640 to launch the brand. While customers must hold a Woori Bank account to activate the service, payments can be made through other banks.
What stands out is that Woori Bank offers a "non-face-to-face self-activation service" for minors (teenagers) under the age of 18. Typically, adolescents and foreigners who cannot verify their identity through standard methods must undergo confirmation procedures via a consultant or submit additional documents to activate budget phone plans. For minors, the consent and verification of a legal guardian are required. However, on Woori WON Mobile, adolescents can activate the service entirely non-face-to-face without needing to call a consultant or submit physical paperwork.
That said, it is difficult to call it entirely "self-service." The activation process still requires the legal guardian’s consent and verification, as well as a Woori Bank account and the smartphone itself. Furthermore, although claimed to be an industry first, LG Uplus’s own budget phone mall, "U+Dot," recently introduced a similar non-face-to-face service (Kids/Youth One-Stop Activation). This method involves parents logging in with their own accounts to verify their child's identity, eliminating the need for store visits or document submissions. If a minor signs up using their parent's account, self-activation is possible there as well.
Woori Bank appears to be targeting the 1020 generation as long-term customers through its budget phone business. Following the simplification of the activation process for minors, it has introduced two types of "Teen-Teen Plans" for subscribers aged 4 to 18. It is also competitively priced. While the competitor KB Liiv M’s "Junior LTE Realistic 2.5GB+" plan offers 2.5GB of base data for 12,900 won per month, Woori WON Mobile’s "Woori Teen-Teen 4GB+" plan provides 4GB for just 10,200 won. Both are unlimited data plans that provide data at speeds of 1 Mbps once the base allowance is exhausted.
Previously, upon registering as a telecommunications operator, Woori Bank stated, "Based on our brand power and existing customer base, we will enter the rapidly growing budget phone market to secure potential customers from the future generation." Woori Bank also plans to air TV advertisements for Woori WON Mobile featuring singer Jang Won-young, who is highly popular among the 1020 generation.
Woori Bank has embarked on aggressive marketing to secure subscribers for Woori WON Mobile. New subscribers by the end of May can receive voucher benefits worth up to 300,000 won. It is also targeting a "lock-in" effect through membership benefits. Membership subscribers receive mobile coupons usable at places like Starbucks, Paik’s Coffee, Coffee Bean, and CU, as well as additional data coupons.
Discounts linked to its own financial products are also being offered. Customers who use the bank as their primary financial institution, or those who have salary or pension transfers and hold deposit/savings products, can receive discounts of up to 3,300 won depending on their transaction history and plan. New subscribers can receive the discount for two months even without a financial performance record. The bank plans to launch a high-interest savings product linked to Woori WON Mobile in May.
The plans consist of 34 types, ranging from the high 6,000-won range to the low 40,000-won range at standard prices. The plan with the largest data allowance is "Woori WON 5G 125GB+," which has a base fee of 42,100 won but is available for 38,800 won during the promotional period. While typical budget phone providers run discount promotions for about six months, the plans linked to financial products have no such time limits.
Woori WON Mobile is primarily based on non-face-to-face sign-ups via the website and banking app, with a simple interface and conversational procedures that lower the barrier to activation. The website details the procedures for plan sign-up and USIM issuance clearly. However, it is not possible to pick up a USIM at a bank branch or receive invoices via traditional mail.
While Woori Bank has expressed its ambition to "become the synonym for domestic budget phones," it is unlikely to be easy for a latecomer to gain market dominance. The growth of the budget phone market has slowed, and there is no shortage of competitors. As of December 2024, the total number of budget phone subscriptions decreased compared to November, marking the first negative growth in about four years. In the financial sector, Kookmin Bank has established itself as the representative brand through KB Liiv M, and Toss (Toss Mobile) has also entered the fray.
Concerns have been raised regarding the impact on the industry. An official in the telecommunications industry stated, "It is true that the financial sector's entry into the budget phone market is a threat to small-scale operators. How can they compete when the bank lowers prices by leveraging financial products?" He added, "Offering only non-face-to-face services is also a problem."
He pointed out, "When subscribers encounter problems, they look for a branch first. Since the bank cannot resolve these issues, they come to nearby device retailers (agencies and shops), and even if we explain that we don't have the authority to help, they don't listen. Because of these insistent subscribers, retailers who have nothing to do with it are being hindered in their business. Banks need to pay attention to post-management, such as by placing dedicated staff within their branches."