This article was published on March 18, 2025, at 3:24 p.m. on the ChosunBiz MoneyMove site.
Shinhan Bank is pushing to sell the site and building of the former Mangwoo-dong branch. The Mangwoo-dong branch was used as a Bank 365 corner with automated teller machines (ATMs) after it was merged with a nearby branch at the end of 2021. The sale of idle real estate appears to have begun as the commercial real estate market enters a recovery phase following a decrease in the benchmark interest rate.
According to the investment banking (IB) industry on the 18th, Shinhan Bank is in the process of selling the land (688.9 square meters) and building (1,666.01 square meters) of the former Mangwoo-dong branch in Jungnang-gu, Seoul. The bank is proceeding with the sale directly without selecting a separate advisory firm. It plans to receive bids until the 20th of this month and determine the winning bidder based on the highest price.
Shinhan Bank will proceed with the sale using a sale and leaseback method. Accordingly, it proposed priority negotiations for the lease agreement regarding the usage space, including the Bank 365 unmanned branch on the first floor. The Mangwoo-dong branch has been used as an 'Evening Plus' service branch supporting banking operations until the evening since it merged with the Sangbong Branch in 2021.
Shinhan Financial Group is also pushing to sell the former headquarters and some branches of its subsidiary, Jeju Bank. The entire land (2,035 square meters) and the Central Road Financial Center (5,125 square meters) located in Jeju Dongmun Market are the targets for sale. Because there is a Jeju Bank branch on the first floor of the said building, the bank is considering a sale and leaseback method for re-leasing after the sale. Jeju Bank is reportedly hoping for a sale price of about 20 billion to 30 billion won for its headquarters and some of its branches.
The sale of idle land by the five major banks in South Korea (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) is expected to continue. The total number of branches of these five banks decreased from 3,927 at the end of 2023 to 3,790 this year, down by 137. Following the closure of some branches in January, Shinhan Bank decided to consolidate 13 branches in April, while KB Kookmin Bank has decided to close about 28 branches.
Among these, the industry expects that the sale of directly owned real estate will be pursued. An industry source noted, “During the COVID-19 pandemic, the number of offline branch closures for domestic banks increased, leading to the sale of idle real estate; however, rising interest rates and economic downturns caused difficulties in the commercial real estate investment market,” adding, “However, as the commercial real estate market enters a recovery phase, it seems likely that sales will be re-pursued.”