[Exclusive] Half of Stores Are on the 2nd Floor... The 'Bank=1st Floor' Rule Has Been Broken

Yoon Doo-hyun's Office Conducts Full Survey of 6,326 Bank Branches in Korea
50.2% of 3,256 Branches of the 4 Major Banks Are Located on the 2nd Floor or Higher
As Non-Face-to-Face Banking Increases and Land Prices Rise, 1st Floor Appeal Declines

More than half of bank branches are located on the second floor or underground. It was commonly known that first-floor branches accounted for 70-80%, but in reality, non-single-floor (not on the first floor) branches were more numerous. As rent continues to rise and the number of customers visiting branches decreases, the formula that "bank branches are on the first floor" seems to have been broken.

On the 24th, Asia Economy conducted a full survey of the branch locations of 6,326 branches from 17 domestic banks in collaboration with the office of Assemblyman Yoon Doo-hyun. Among the 3,256 branches of the four major banks?KB Kookmin, Shinhan, Hana, and Woori?50.2% (1,637 branches) were located on the second floor or higher. Branches located underground accounted for 78 (2.3%), so the proportion of non-single-floor branches (52.5%) surpassed that of first-floor branches. This is the first time that floor-by-floor statistics for each bank have been investigated and announced.

Looking at all domestic branches, 2,350 branches (37.1%) were on the second floor or higher, and 108 branches (1.7%) were underground, so the proportion of first-floor branches (61.1%) was still higher. This is because NH Nonghyup Bank maintains 1,010 branches, accounting for 90.0% of its 1,122 branches, on the first floor. Excluding Nonghyup Bank, which has many branches in rural areas with lower rent, the majority of banks have effectively established second-floor branches as the norm.

As Non-Face-to-Face Finance Increases and Land Prices Rise... "No Reason to Be on the First Floor"

Among the four major banks, KB Kookmin Bank had the highest proportion of non-single-floor branches. Of its 954 branches, 614 (64.3%) were located on the second floor or higher, or underground. Shinhan Bank followed with 466 out of 854 branches (54.5%), then Hana Bank (48.3%), and Woori Bank (40.3%).

The financial sector had generally estimated that the proportion of branches located on the second floor or higher, or underground, was around 20-30%. Banks preferred first-floor locations with larger spaces because it allowed their customers to conveniently visit branches and provided promotional benefits. Using two floors was typically reserved for cases with many corporate and retail finance customers or where a PB (Private Banking) center was located.

However, as non-face-to-face finance has become more active and land prices have risen, there is an analysis that the attractiveness of first-floor branches has declined from the perspective of financial companies. Many branches operating on multiple floors reportedly place ATMs on the first floor, with staff stationed on the second floor.

An official from a commercial bank explained, "If it is not a self-owned building, even large banks find rent burdensome. One easy way to reduce rental costs is to locate branches on the second floor."