First Day of Social Distancing Level 2... Banking Sector Becomes a Safe Zone Due to Spread of Non-Face-to-Face Services (Comprehensive)

What is the response status of the banking sector?

With the 'Social Distancing' in the Seoul metropolitan area elevated to Level 2 from midnight on the 24th, quarantine measures have been significantly strengthened, especially in multi-use facilities. Separately, the Seoul Metropolitan Government declared a 'Pause Period for 10 Million Citizens' until the end of the year, introducing measures such as enhanced Seoul-style precision quarantine for 10 major facilities within the city, a complete ban on gatherings of more than 10 people throughout Seoul, and a 20% reduction in public transportation operations after 10 p.m. The photo shows quarantine company personnel conducting disinfection at the Yeouido Transfer Center in Yeongdeungpo-gu, Seoul, on the day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Park Sun-mi] As social distancing in the Seoul metropolitan area was raised to Level 2 starting from the 24th due to the third wave of the novel coronavirus infection (COVID-19), banks hurriedly convened emergency meetings and announced response measures including strengthened quarantine protocols. Since banks have actively expanded non-face-to-face financial services while experiencing the COVID-19 crisis this year, the impact of the Level 2 social distancing upgrade is expected to be minimal.

According to the financial sector, domestic commercial banks held emergency meetings the day before to prepare and implement response systems following the upgrade to social distancing Level 2. Shinhan Bank, which had been operating 'Shinhan Quarantine Guide Level 2' since the 19th, strengthened its quarantine measures from that day to align with the Level 2 social distancing upgrade. Accordingly, after-work social gatherings among employees are completely prohibited. Eating and drinking in branch meeting rooms and lobbies, as well as providing food and beverages to customers, are also prohibited. Each department must maintain a split work ratio of at least 15%.

Woori Bank is dispersing personnel across eight locations, including the head office, to ensure normal operations even if the head office is closed, and expanded its split work ratio from the existing 20% to 30% starting that day. At branches, existing measures such as installing transparent partitions, providing hand sanitizers, and temperature checks are maintained, while disinfection of customer touchpoints such as ATM screens, pin pads, and intercoms is being intensified.

Bank Sector Responds with Employee Dispersal and Ban on Gatherings
Branch Operating Hours Not Shortened Yet

NH Nonghyup Bank has instructed employees to postpone or cancel all meetings and appointments until further notice. Meetings between employees must utilize non-face-to-face communication tools such as messengers and video conferencing. KB Kookmin Bank plans to continue the quarantine guidelines implemented when social distancing was raised to Level 2.5 before Chuseok. Twenty percent of headquarters staff work from home, 15% work in split shifts, and measures such as banning face-to-face meetings, events, dinners, and gatherings continue.

IBK Industrial Bank of Korea plans to stagger commuting and lunch hours, encourage use of vacation days, and enforce mandatory mask-wearing to strengthen work management in line with the COVID-19 situation. Employees have been notified to cancel or postpone work-related and personal gatherings such as meetings, events, dinners, and social gatherings as much as possible.

However, instead of focusing on quarantine, the banking sector has decided to postpone the one-hour reduction in branch operating hours that was implemented at the end of August. At that time, in response to the serious spread of COVID-19 and social distancing Level 2.5, banking hours in Seoul, Gyeonggi, and Incheon were temporarily adjusted. Branch opening hours were delayed from 9:00 a.m. to 9:30 a.m., and closing hours were moved earlier from 4:00 p.m. to 3:30 p.m. The industry expects that if social distancing is further raised to Level 2.5 again, shortened branch hours will be discussed.

The fact that the banking sector’s response measures to the Level 2 social distancing upgrade focus on strengthening quarantine or maintaining existing measures indicates that the impact on banks will not be significant. This is due to the banking sector having already greatly expanded non-face-to-face financial services while experiencing the COVID-19 crisis this year.

Kookmin Bank launched the KB Smart Corporate Loan service this week, allowing all corporate customers to process corporate loan transactions through non-face-to-face channels without separate registration procedures amid the COVID-19 spread. Shinhan Bank opened the 'Digitate Branch' at its Seosomun branch on the same day, becoming the first commercial bank to enable customers to remotely conduct transactions with video consultation specialists through a video consultation window.