Kookmin Bank, Shinhan Financial, and Toss have all begun to offer MVNO plans, which allows subscribers to use their regular bank account for their mobile phone service.

The budget phone market is becoming increasingly competitive, as financial institutions look to get a piece of the pie. Small and medium-sized MVNOs are at risk of being pushed out.

Toss operator Viva Republica recently signed a stock trading contract to acquire a 100% stake in Merchant Korea, a Mobile Virtual Network Operator. It's a small-sized affordable carrier.
Jang Min-young, head of Toss' business strategy, said, "Just as Toss has saved customers' time and money and created social utility through financial services, we want to contribute to resolving inconvenience of customers who subscribe to affordable phones and reducing communication costs for Toss customers."
Currently, only about 14% of all mobile phone subscribers are subscribed to affordable MVNOs, and even about half of them are IoT (Internet of Things) lines, not mobile phones.
Following KB Bank, Shinhan Financial launched the "MVNO plan" last year, Toss acquired the provider ahead of the clash with Kookmin and Shinhan Bank.
The budget phone market has become a battleground for the financial sector, where the separation of financial and industrial sectors has been eased. Small and medium-sized Korean MVNO companies are worried that their positions will be narrowed.