"Finding Banks Has Become Difficult" 200 Disappeared Last Year... Authorities Also Conduct Inspections

#Office worker Choi Yerim (32) recently felt embarrassed when she tried to visit her main bank near Sindorim Station in Seoul. Since it is a transfer station for subway lines 1 and 2 and a bustling area with department stores nearby, she naturally expected the bank to be there, but there was no branch. Choi said, "In the past, major banks were always located in busy areas, so I went without much thought, but now I think I need to search for the location in advance if I want to visit a bank branch."

On the 21st, an analysis of the business reports of KB Kookmin, Shinhan, Hana, and Woori Banks showed that the total number of domestic branches (branches + sub-branches) last year was 2,883. This is 196 fewer than in 2021 (3,079). As non-face-to-face transactions such as internet banking and mobile banking have become more active, the number of offline branches and ATMs is rapidly decreasing.

Banks are closing an average of 50 offline branches each year. Looking at each bank, last year Kookmin Bank had 856 branches, down 58 from 2021. Shinhan Bank had 721 branches, a decrease of 63 during the same period. Woori Bank had 713 branches and Hana Bank had 593 branches, closing 55 and 20 branches respectively.

The number of bank employees has also decreased. The total number of employees at the four major banks last year was 42,335, down 2,651 from 44,986 in 2021. As cash usage declines, the number of ATMs at the four major banks dropped by 1,531 to 16,926 last year. The number of ATMs at the four major banks has been decreasing by more than 1,000 each year, from 19,539 in 2020 to 18,457 in 2021.

As banks reduce branches and sub-branches, which incur significant operating costs such as building rent and labor costs, financial consumers are experiencing greater inconvenience. Kang Dayeon, a research fellow at the Financial Economy Research Institute, stated in the report "Analysis of the Ripple Effects of Bank Branch Reduction and Bank Sector Response Measures," "Although the number of bank branches is decreasing in major countries overseas as well, when comparing the number of branches per 100,000 adults, Korea is reducing branches faster than major countries such as the United States and France. The reduction of bank branches hinders the domestic startup environment and negatively affects the regional economy."

In response, financial authorities held a working-level meeting last week to review the indiscriminate reduction of bank branches. A Financial Services Commission official said, "From the perspective of consumer protection, we are checking the status of branch closures and whether there are any issues with the current system together with the Financial Supervisory Service."