The figure is equivalent to about 31 percent of Korea's total population. The online banking penetration ratio is similar to Canada's 30.7 percent and Australia's 28.4 percent, but is higher than other countries,' the central bank said.

The central bank estimated that about 7.17 million bank customers log onto the Internet every day to transfer cash and pay their bills.

Internet banking is also gaining popularity among corporate customers, with a total of 690,000 companies using online banking services, also up 76.9 percent over the cited period, the report showed.

Internet banking usage in Korea has been on the increase, with customers encouraged to use online banking services in line with the adoption of the five-day workweek last September.

The adoption of Internet banking services, including cash transfers, loans and account checking, reached 5.89 million on average a day last year, sharply rising 92.1 percent from a year ago.

Of these, cash transfers accounted for 18.4 percent of the total online banking transactions valued at 7 trillion won per day, according to the report.

The central bank's report also showed that online banking operations have risen sharply after the introduction of the five-day workweek in September.

The online banking services accounted for 16 percent of total banking services as of end-December last year, rising 7.2 percentage points from a year ago.

More specifically, commercial banks' online banking services comprised about 23.2 percent of their total banking services as of last December, up 9.0 percent from a year ago, while regional and policy banks' Internet banking services carved out 11.8 percent of the total services, also up 7.5 of a percentage point over the cited period.

Korea's mobile phone banking service was also found to have grown sharply last year. Mobile phone banking services found 1.09 million users as of last December, up 21.9 percent from the previous three months.

Korea's online banking has a great deal of growth potential, as the convenience of Internet banking is stimulating the growth of multiple online banking relationships, while offering a chance for customers to utilise one bank's specialized services, the central bank said.

Ultimately, more competition among online banks is good for the Internet banking consumer, as this will translate into lower fees, more functionality, and better online banking services overall, it said.