[Report] "We Do Not Accept Coin Exchanges" Self-Employed Struggling with Bank Rejections (Comprehensive)

Bank Branches Limit Coin Exchange to 'Weekday Mornings'
Some Banks Do Not Exchange Coins at All
Taxi Drivers and Self-Employed Complain of Inconvenience... Turning to Gas Stations
Bank of Korea Significantly Reduced Coin Issuance Last Year... Lowest Ever Recorded

On the 15th, a notice about coin exchange was posted at a commercial bank in Jung-gu, Seoul. The coin exchange service is limited to specific weekday mornings.

[Asia Economy Reporter Ryu Tae-min] Ko Yoon-jin (53, pseudonym), who runs a self-service laundromat in Seodaemun-gu, Seoul, recently stopped by a bank branch to exchange coins but left empty-handed. After being told that the branch did not offer coin exchange services, she went to another nearby bank branch, only to find that she was restricted by the time limit. Ko said, "I have no idea when or where I can go, so I have 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 is quite inconvenient."

Jeon Mi-soo (45, pseudonym), who runs a cafe near Chungmuro Station in Jung-gu, Seoul, has sacks full of coins stacked on shelves. Since banks only allow coin exchanges until 11 a.m., and she often misses the opportunity because she is busy serving customers past noon, she has been unable to exchange coins for months. Jeon said, "Every time I visit, they say coin exchange is not available, so I haven't been able to exchange for several months," adding, "It's already hard to find time on weekday mornings, so it's not easy."

As cash usage declines and mobile and electronic transactions become more active, coins have become a 'burden,' increasing difficulties for self-employed individuals. In particular, businesses with high coin demand such as coin karaoke rooms, laundromats, vending machines, taxi drivers, and traditional market merchants face significant inconvenience. Banks have imposed restrictions allowing coin exchanges only at specific branches, days, and times, often without proper notification.

On the 15th, the reporter visited six major commercial bank branches in Seoul and found that most branches limited coin exchange services to weekday morning hours. Some banks, citing the COVID-19 pandemic, have completely stopped coin exchange services at all branches. Carrying sacks full of coins to a bank without prior information may result in wasted trips.

The problem is that consumers find it difficult to check the available times for coin exchange. Even within the same bank, the days and hours for coin exchange vary by branch, and there is no separate service providing this information via branch websites or bank-specific applications. The only option is to call each branch directly to confirm. Services also differ by branch. On this day, Branch A of Bank A refused coin exchange unless the coins were pre-sorted. Bank B only provided exchanged amounts via account transfer, not cash.

Bank: "Coin exchange takes a long time... disrupts other tasks"
Self-employed with high coin demand say "It's frustrating not knowing which branches and times allow exchanges"

Banks say they have no choice due to the sharp decline in coin exchange demand. A representative from Bank C said, "Only one or two customers visit per week for coin exchange," adding, "Even if exchanges are conducted only during specific hours, it does not affect other operations." A representative from Bank D said, "Coin exchange takes a long time and can disrupt other tasks," adding, "We provide this service only on days with relatively fewer 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 individuals with high coin demand is bound to increase. A taxi driver said, "I find banks too inconvenient to even try," adding, "I use coin exchange services at some gas stations or driver restaurants."

Banks' reluctance to provide coin exchange services stems from the sharp decline in usage. According to the Bank of Korea's economic statistics system, coin issuance from January to November last year totaled 23.714 billion won, down from 27 billion won the previous year?the lowest since the Bank of Korea began compiling related statistics in 1992.

Policies promoting a 'coinless society,' such as the 'change account deposit service,' which directly deposits change 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 the reduced demand and increased management burden, 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 solution."