As the banking sector has begun restructuring its branches since the beginning of the year, 90 branches have disappeared in the past month. Financial authorities had planned to prepare measures in response to the reduction of banks and branches by the end of last year, but discussions are reportedly yet to begin.
According to the financial sector on the 7th, Shinhan Bank consolidated 26 branches across the country, including the Seoul Bangbae Business Center and the Samseong-dong Business Center, with nearby branches. Among the consolidated branches, 17 are located in Seoul. Shinhan Bank will also consolidate 13 branches with nearby branches on April 7. A total of 39 branches of Shinhan Bank will disappear between January and April.
On the previous day, Woori Bank consolidated 23 branches across the country, including the Seoul Sejong-ro Financial Center, and 3 Branch Offices with nearby branches. NH NongHyup Bank also recently merged 38 branches. In about a month, 90 bank branches, including Branch Offices, have closed nationwide.
This year, banks are expected to initiate large-scale branch restructuring due to the activation of online banking and expense reduction. With approximately 90% of bank transactions taking place through non-face-to-face methods such as mobile banking, the banking sector explains that it is unnecessary to maintain branches while burdened by high rental costs.
Banks minimized branch consolidation in accordance with financial authorities' guidelines from 2023 to 2024. The number of branches of the four major commercial banks (Kookmin, Shinhan, Hana, and Woori) decreased by 59 last year and by 58 in 2023, respectively. However, they have begun large-scale branch restructuring again since the beginning of this year. NongHyup Bank has maintained its number of branches as much as possible due to its characteristic of being primarily utilized by local farmers.
In November of last year, financial authorities announced the formation of a task force (TF) with the banking sector and stated that measures to enhance financial accessibility in response to the reduction of branches would be prepared within the year. However, it has been reported that the TF has not held any meetings even as the new year has begun.
A banking sector official noted, "In the case of the joint branch of banks under review by financial authorities, we believe its effectiveness is diminished due to expense and operational issues," and added, "The introduction of 'bank agency' operations, where 2,500 post offices nationwide will only perform part of banking tasks, is more realistic."