Denmark, where digitalization is rapidly spreading, will completely halt letter delivery starting next year.
According to reports from the BBC and other outlets, Denmark's state-run postal service, PostNord, will end its 400-year-old letter delivery service at the end of this year.
At the same time, PostNord will carry out a large-scale restructuring, cutting about 2,200 jobs in loss-making divisions while hiring 700 new employees to expand its parcel logistics business.
The main reason behind this decision is the drastic decline in mail volume. In 2000, Denmark handled 1.4 billion pieces of mail annually, but last year, this number dropped to 110 million, representing a 92% decrease in just over 20 years. Only one mail sorting facility remains, and the 1,500 red mailboxes that had been installed across Denmark have been removed.
Denmark is considered one of the most advanced countries in Europe in terms of digital administration. In the digital government assessment released by the OECD in 2023, Denmark ranked second after South Korea, moving up two places from fourth in 2019 in just four years.
The rapid expansion of electronic document usage and the establishment of online administrative services have played a major role. In addition, the opening of the postal market to the private sector and the abolition of the tax exemption system last year have caused postage rates to soar. Currently, sending a single letter costs 29 Danish kroner (about 6,300 won), and private delivery companies will take over personal letter delivery in the future.
The decline in mail volume is not unique to Denmark; similar trends are likely to occur across Europe. Analysts note that, worldwide, the role of traditional mail is shrinking, while the industry is rapidly shifting toward electronic documents and parcel logistics.
According to a McKinsey report, by the late 2010s, mail volumes in Germany and Switzerland had fallen by 40% compared to the early 2000s, while the United States saw a 46% drop, and the UK and other countries experienced declines of 50% to 70%.
As a result, Deutsche Post in Germany cut 8,000 jobs this year, and the UK’s Royal Mail, with a 500-year history, announced plans to reduce delivery frequency to cut costs. In South Korea, the postal business is also facing growing deficits, with losses expected to reach around 200 billion won this year alone.
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