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[Alpha Biz= Reporter Kim Sangjin] Over 1,000 Bank Branches Closed in the Past 5 Years, Raising Concerns Over Financial Access for Non-Metropolitan Residents

Lee Bok-hyun, the Governor of the Financial Supervisory Service (FSS), raised concerns that the financial industry may not have sufficiently considered its responsibility to ensure financial access as more than 1,000 domestic bank branches have closed in the past five years.

Speaking at an event titled "A Financial Industry Dialogue for Enhancing Financial Accessibility," held on the 26th at the Bank Hall in Myeongdong, Seoul, Lee pointed out that the financial industry has focused too much on digital transformation and cost-cutting, often at the expense of physical branches.

According to the FSS, as of the end of last month, there were 5,690 bank branches in South Korea, with 1,189 closures over the past five years. Of these closures, 708 occurred in the Seoul metropolitan area and 481 in non-metropolitan areas.

Notably, 69% of the closed branches were those of the "Big Four" banks: KB Kookmin Bank (26.3% closure rate), Woori Bank (24%), Shinhan Bank (22.9%), and Hana Bank (18.8%).

Additionally, the number of ATMs in the country decreased by 9,307 from 2019, with the current total standing at 27,157.

 

 

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