Citi, SK Tel set up mobile financial service JV

SEOUL, March 6 (Reuters) - Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz), the biggest U.S. bank, and South Korea's SK Telecom Co (017670.KS: Quote, Profile, Research, Stock Buzz), said on Thursday they launched a joint venture to offer mobile financial services, investing $8 million each.

The two companies said in a statement the joint venture, Mobile Money Ventures LLC, will offer a trial service to Citi customers in select Asian and North American markets in the second half of 2008.

Mobile Money Ventures, to be based in San Francisco, aims to provide broader banking services on cell phone, with new features such as near field communication-based (NFC) payments, stock management and advertisements.

NFC technology is already used widely, employing dedicated cards which are swiped across a reader which deducts credit for payments.

SK Telecom, South Korea's top mobile service operator, also runs a mobile venture in the United States with EarthLink Inc (ELNK.O: Quote, Profile, Research, Stock Buzz).

SK shares fell 1.06 percent to 186,000 won by 0109 GMT, lagging the wider market's 0.25 percent gain. (Reporting by Rhee So-eui; Editing by Keiron Henderson)