Savings banks gather in Euljiro, the 'financial mecca,' even while downsizing

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[Asia Economy Reporter Song Seung-seop] The savings bank industry, which has collectively embarked on 'downsizing,' is gathering in Euljiro, Seoul. This is interpreted as a strategic move considering the area's concentration of major financial companies, facilitating collaboration and synergy, as well as the increasing influx of consumers in their 20s and 30s, who represent a key future customer base.

According to the savings bank industry on the 8th, Accuon Savings Bank began office construction last month to open a new branch in the Euljiro area of Jung-gu, Seoul. The new branch is planned to be located in the Pine Avenue building adjacent to Euljiro Station. Construction is expected to be completed early next month, with full operations likely to commence next year.

JT Chin-ae Savings Bank established a new base in Euljiro at the end of last year, marking eight years since its entry into Korea in 2012. All 29 departments, including key divisions such as the Credit Management Headquarters, Information Strategy Headquarters, and Screening Headquarters, which were previously located in Gangnam, have relocated to Euljiro. At that time, a JT Chin-ae Savings Bank official stated, "By securing a foothold in Euljiro, where various financial companies are concentrated, we plan to accelerate the provision of high-quality financial services."

As a result, among the top 10 savings banks by asset size, five companies (SBI, OK, Welcome, Accuon, and JT Chin-ae Savings Bank) now operate headquarters or branches in Jung-gu. Savings banks affiliated with financial holding companies (Shinhan, IBK, BNK) as well as Yuanta and Minguk Savings Bank are also located in Jung-gu and the Euljiro area.

Concentration of Other Financial Firms and Many Young Professionals... 'Prime Neighborhood' Euljiro

There are only about 300 offline branches maintained nationwide by 79 savings banks, and this number is decreasing every year. This year, Shinhan Savings Bank consolidated its Ilsan branch into Yeouido, and Hana Savings Bank closed its Guro Digital branch. Accuon Savings Bank also plans to consolidate six branches, including the Suyu and Gongdeok Station branches. The number of savings bank branches is expected to barely exceed 300 this year, down from 314 in the second quarter.

Nevertheless, the reason savings banks aim to establish themselves in the Euljiro area is explained by the presence of numerous financial companies and card and securities firms from other sectors. The so-called 'Janggyo Intersection,' centered around the Janggyo Building in Euljiro, is considered a traditional financial hub. The Hana Financial Group headquarters, Shinhan Card headquarters, and IBK Industrial Bank headquarters are located here. The headquarters of Shinhan, Woori, and NH Nonghyup Financial Holding Companies are also situated in Jung-gu.

The savings bank industry is actively promoting linked sales with other financial companies, supported by stable and rapid loan growth. This is to diversify sales channels and increase contact points with financial consumers. A representative example is the partnership with KB Kookmin Card to launch two types of personal credit cards for savings bank customers. To pursue business agreements or collaborations, Euljiro, where financial companies are concentrated, is inevitably efficient.

An official from a savings bank operating a branch in Euljiro explained, "The conditions for maintaining and establishing branches ultimately depend on foot traffic and the resulting business environment," adding, "Even though land prices are high, the exposure frequency is equally high, and there are many young professionals, so the likelihood of financial consumers visiting is great, making it a prime location."

This content was produced with the assistance of AI translation services.