'Cashless Society'... Decline in ATM Usage and Worsening Management of Cash Transport Companies

As the public's use of cash has significantly decreased, it has been revealed that the management of ATM operators and cash transportation companies is deteriorating, and signs of weakening in the domestic currency circulation system are emerging.

The Currency Circulation System Related Agencies Council held its regular meeting for the first half of 2023 at 10 a.m. on the 19th at the Bank of Korea headquarters, and on the 23rd announced that it discussed recent currency supply and demand trends, the current status of the domestic currency circulation system, and measures to ensure the stable operation of the system.

Kim Geun-young, Director of the Banknote Issuance Department at the Bank of Korea and chairman of the council, emphasized that the stable operation of the currency circulation system is important to smoothly support the public's economic activities and to ensure convenience in cash usage.

Meeting participants evaluated that although the domestic currency circulation system is still generally functioning well, signs of weakening have recently appeared due to the declining trend in cash usage.

Since cash supply and circulation businesses require a certain level of transactions, the decrease in cash usage leads to increased unit costs, which can impose an economic burden on the cash infrastructure.

So far, the public can easily obtain cash when needed, and cash is usable in most transactions, so public trust in currency remains relatively high.

However, as ATM usage frequency, cash transportation, and cash sorting volumes have significantly decreased, the business conditions in the currency sector for non-financial ATM operators and cash transportation companies have worsened.

The council explained, "These institutions are pursuing cost reduction, business diversification, and fee adjustment negotiations with financial institutions to improve profitability, but if the profitability of cash handling businesses further declines, a reduction in these businesses is expected to be inevitable."

Additionally, meeting participants explained that in the process of advancing toward a 'cashless society,' institutional support such as enacting laws to guarantee the right to choose cash usage is necessary to enhance the convenience of cash use for the public.

The council stated, "Considering the significant differences in cash usage conditions depending on region and age, it is important to establish tailored policy measures," and added, "as part of measures to alleviate the withdrawal of coins, it is also necessary to consider placing coin collection devices inside stores of retailers and distributors."

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