The number of people who use the " virtual machine " mobile banking service is growing and is expected to pass the 2 - million mark this year , industry data showed yesterday . The " VM banking " service allows mobile subscribers to use mobile banking by downloading programs onto their phones wirelessly . VM banking does not require chips to use the service unlike the traditional chip - based method . While chip - based banking is available in a limited number of mobile phones , VM banking supports most of the handsets sold in Korea . An increasing number of customers are opting for mobile banking services that allow them to conduct bank transactions while on the move . Korea ` s mobile penetration rate nears 100 percent . As of the end of September , a combined 1 . 9 million users signed up for VM services offered by the country ` s three operators . SK Telecom , Korea ` s biggest mobile carrier , said its VM banking service has attracted 990 , 000 subscribers in September , from 460 , 000 in January this year . KT , the No . 2 wireless operator , also said its VM banking subscribers surpassed 650 , 000 as of the end of September . The figure for third - ranked LG Telecom stood at 260 , 000 . The three operators charge up to 1 , 000 won per month for VM banking . Driven by the growth of VM banking , the total number of mobile banking subscribers climbed 8 . 8 percent to 9 . 9 million in the second quarter , from the previous quarter , according to data by the Bank of Korea . The number of VM banking subscribers outpaced that of chip - based banking subscribers for the first time in the April to June period , with 5 . 27 million to 4 . 68 million . Mobile banking transactions also surged 25 percent to 247 . 2 billion won in terms of value in the second quarter , from the previous quarter . On a volume basis , mobile banking transactions jumped 15 . 1 percent to 1 . 64 million . As to security concerns , the BOK said security should be strengthened for mobile banking , but costs and technology are barriers . " We have to take into account various factors in enhancing mobile banking security , " Kim Jeong - kyu , a BOK official said . ( hjjin @ heraldm . com ) By Jin Hyun - joo