Korea Post has begun work to raise fees for deposit and withdrawal, passbook inquiry, and automated teller machine (ATM) services it provides through post offices to 12 domestic banks. The service lets customers use deposit and withdrawal services for their banks at post office counters and ATMs nationwide, and Korea Post decided to recalculate the fees charged to banks to reflect higher labor costs and inflation.
According to the financial sector on the 17th, Korea Post recently launched a project to calculate the "costs for the joint use partnership of the post office financial counter network." Korea Post said it is necessary to set fees that realistically reflect actual operating and maintenance costs, such as labor and facility usage, as well as cost increases for the service.
Starting with Citibank in 1998, post offices have signed agreements with a total of 12 commercial and regional banks to provide services that allow customers to use banking services at post office counters. As bank branches have been reduced, lowering financial service access for older adults and local residents and other financially vulnerable groups, the aim is to supplement this by jointly using the post office financial counter network.
Customers use this service free of charge, but banks pay Korea Post a fee per use. For deposits and withdrawals at post office counters, a fee of 600 won applies per transaction under 100,000 won, 1,400 won for 100,000 won or more and up to 1 million won, and 2,000 won for over 1 million won. ATM cash deposit fees are 700 won, withdrawals are 450 won, and transfers are 400 won.
Banks currently using this service are 12 in total: KB Kookmin, Shinhan, Woori, Hana, iM Bank, SC First, Citi, Kyongnam, Jeonbuk, Jeju, IBK Industrial, and KDB Industrial Bank.
Korea Post plans to analyze the service expense structure through an external research project and, based on that, establish criteria for calculating fees. The research project is expected to be completed as early as the third quarter of this year. In the financial sector, some believe that if Korea Post raises service fees, banks may pass part of the increased expense on to customers.