(Photo= Yonhap news)

[Alpha Biz= Reporter Kim Minyoung] In the past three years, major banks in South Korea have closed over 500 branches, and next month they are set to close an additional 25.

According to the financial sector on the 25th, banks such as Woori Bank, Shinhan Bank, and Nonghyup Bank will shut down a total of 25 branches (including sub-branches) next month. Woori Bank, with the largest scale of closures, will cease operations at 21 branches (19 branches and 2 sub-branches) on July 5, including 20 in the Seoul metropolitan area and 1 in Busan, consolidating them into nearby branches.

Shinhan Bank will integrate 1 branch and 2 sub-branches in Seoul with nearby branches on July 15. Additionally, in Seoul, Daejeon, and Chungnam regions, 5 branches will be merged into corporate financial centers at the same locations, which will continue to operate as financial centers without perceptible changes for customers.

NH Nonghyup Bank will simultaneously close and establish new outlets. On the 20th of next month, the Taepeung-dong branch in Jeonju, Jeollabuk-do will close, while a new Jeonju-Wanju City District Headquarters will open nearby.

As of last year, the number of branches of the five major banks—KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup—had decreased from 4,425 at the end of 2020 to 3,927 by last year, marking a reduction of over 500 branches in three years. In just the first quarter of this year, the five major banks closed 12 branches. Only Hana Bank has not consolidated or closed any branches since July last year.

Some banks are currently selling properties where closed branches were located. KB Kookmin Bank is proceeding with the sale of idle real estate in 8 locations across the provinces, with the total minimum bid amounting to 28.9 billion won.

 

 

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