"Withdrawing Money Is Difficult"... ATMs Disappearing Overnight

Customers are conducting transactions at a bank ATM. Photo by Jinhyung Kang aymsdream@

As non-face-to-face transactions such as internet banking and mobile banking become more active, the number of offline branches and automated teller machines (ATMs) is rapidly decreasing.

According to an analysis of the quarterly reports of KB Kookmin, Shinhan, Woori, and Hana Banks on the 19th, the number of ATMs as of the end of June was 16,431, down 449 from 16,880 at the end of last year. Simply put, 2 to 3 ATMs are disappearing every day. Compared to 2021 (18,450 units), this is a decrease of 1,919 units.

One of the main reasons for the disappearance of ATMs is the reduced demand due to a decline in cash usage. According to the Bank of Korea, the proportion of cash transactions among payment methods was 26.4% in 2019 before COVID-19, but decreased to 21.6% in 2021. On the other hand, mobile card usage increased from 3.8% in 2019 to 9.0% in 2021, while the proportion of credit card usage remained almost the same, at 43.7% in 2019 and 43.4% in 2021.

From the perspective of banks operating ATMs, the cost-effectiveness is also a reason. It is known that the purchase and installation cost per ATM is close to 10 million KRW. Moreover, as banks have recently implemented fee exemption policies, the profitability of ATMs is steadily declining.

The number of bank branches (including main branches and sub-branches) is also steadily decreasing. The total number of branches of the four major banks as of the end of June was 2,818. An analysis of each company's business reports showed a decrease of 65 branches compared to 2022 (2,883 branches). Compared to 2021, 261 branches have disappeared.

Banks are closing an average of 50 offline branches each year. Looking at each bank, KB Kookmin Bank had 856 branches last year, down 58 from 2021. Shinhan Bank had 721 branches, a decrease of 63 during the same period. Woori Bank had 713 branches, and Hana Bank had 593 branches, closing 55 and 20 branches respectively.

As the disappearance of bank branches increases consumer inconvenience, financial authorities have also prepared measures to strengthen alternative branches. According to the measures announced by the Financial Services Commission in April, banks are required to establish 'alternative branches' before deciding to close a branch, and disclosure of related information has been expanded. The management disclosure related to branch closures, previously conducted once a year, has been expanded to four times a year, and additional information such as closure dates, reasons, and alternative measures must be provided.

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