South Korea will forge a mobile radio-frequency identification network in metropolitan regions by the end of the year to promote mobile commerce, the Ministry of Knowledge Economy said Tuesday.

The technology allows users to pay for items by flashing RFID-imbedded mobile phones in front of wireless readers.

The RFID system has already been used in the country for transportation cards and wireless expressway electronic cards, widely known as “hi-pass.”

Yet its use has been expanding over the years as smart devices such as smartphones and tablet personal computers have become popular among Koreans.

The government’s latest move comes as the local mobile commerce market is expected to grow further in the near future, due to planned launch of multiple mobile phones that are equipped with RFID reader chips.

The network, the first of its kind in the country, will be established at major cinemas nationwide, the ministry said.

It would enable users to reserve and purchase movie tickets, as well as to pay at nearby restaurants and stores conveniently with mobile phones equipped with such chips.

The mobile RFID network is to be created by the ministry in collaboration with mobile carriers SK Telecom and KT, plus credit card firms including Shinhan Card and Samsung Card, the ministry said.

The system would function as a test-bed for setting the country’s mobile transaction standards, according to the ministry.

By Koh Young-aah (youngaah@heraldcorp.com)