[Report] Banks Rejecting Coin Exchanges at the Door... Store, Day, and Time Restrictions Cause Inconvenience for Self-Employed

Bank Branches Limit Coin Exchange to 'Weekday Mornings'
Taxi Drivers and Self-Employed Complain of Inconvenience... Turning to Gas Stations
Bank of Korea Significantly Reduced Coin Issuance Last Year... Lowest Ever Recorded

[Asia Economy Reporter Ryu Tae-min] Ko Yoon-jin (53), who runs a self-service laundromat in Seodaemun-gu, Seoul, recently stopped by a bank branch to exchange coins but came away empty-handed. After being told that coin exchange was not available at that branch, she went to another nearby bank branch, only to find that it was outside the allowed time. Ko said, "I don't know when or where I can go, so I've been piling up coins in my store for nearly half a year," adding, "I want to exchange coins to give New Year's money to my nephews during the Lunar New Year holiday, but it's very inconvenient."

As cash usage declines and mobile and electronic transactions become more active, coins have become a 'burden,' increasing difficulties for self-employed business owners. In particular, there are complaints about the inconvenience faced by businesses with high coin demand such as coin karaoke rooms, laundromats, vending machines, as well as taxi drivers and traditional market merchants. Banks have imposed restrictions allowing coin exchange only at specific branches, days, and times, often without proper notification.

On the 15th, a reporter visited six major commercial bank branches in Seoul and found that most branches limited coin exchange services to weekday mornings. Some banks cited the COVID-19 pandemic as a reason to completely stop coin exchange services at all branches. If you visit a bank carrying a bag full of coins without checking in advance, you might end up empty-handed.

The problem is that it is not easy for consumers to check the available times for coin exchange. Even within the same bank, the days and times when coin exchange is possible vary by branch, and there is no separate service providing guidance through branch websites or bank-specific applications. The only option is to call the bank branch you plan to visit and check individually. Services also differed by branch. On that day, Branch A of Bank A refused coin exchange, saying only pre-sorted coins were accepted. Bank B only provided the exchanged amount via account transfer, not cash.

Banks: "Coin exchange takes a long time... disrupts other tasks"

Banks say they have no choice due to the sharp decline in coin exchange demand. A representative from Bank C explained, "Only one or two customers visit per week for coin exchange," adding, "Even if we conduct exchanges only during specific times, it does not cause problems in handling other tasks." A representative from Bank D said, "Coin exchange takes a long time and can disrupt other work," adding, "We provide this service only on days with relatively fewer walk-in customers." In fact, when the reporter exchanged 36,000 won worth of coins at one bank branch, it took 15 minutes. The process was delayed because the coin counting machine broke down.

The inconvenience for self-employed people with high coin demand is bound to increase. A taxi driver said, "I don't dare to go to banks because it's inconvenient," and revealed, "I use coin exchange services at some gas stations or driver restaurants."

Banks' rejection of coin exchange is due to the sharp decline in usage. According to the Bank of Korea's economic statistics system, the amount of coins issued from January to November last year was 23.714 billion won, down from 27 billion won the previous year, marking the lowest figure since the Bank of Korea began compiling related statistics in 1992.

Policies such as the 'coinless society' initiative and the 'small change account accumulation service,' which deposits change directly into accounts, are also factors reducing coin demand. A Bank of Korea official explained, "With the recent increase in credit card and simple payment usage, coins are rarely used not only for public transportation but also for small payments," adding, "Considering that demand for holding coins has decreased while management burdens have increased, we have significantly increased coin collection."

Professor Kim Tae-gi of Dankook University's Department of Economics said, "The government needs to step in to ensure that those who still use coins are not disadvantaged," adding, "Local governments providing their own coin exchange services and educating the elderly on how to use mobile payments could be one way to address this."