[Alpha Biz=(Chicago) Reporter Paul Lee] Domestic commercial banks have begun to close their stores in the Gangnam station area in Seoul. It is a desperate measure that was brought up because it could not withstand worsening profitability due to the spread of non-face-to-face financial transactions and a decrease in the number of visitors.

According to the financial sector on the 19th, Woori Bank will close a total of 11 stores next month. Major branches in the Gangnam area, including Gangnam Station, Yangjae Station and Nambu Terminal in Seoul, have been listed on the merger list.

The same goes for other banks. Recently, Kookmin Bank closed three stores, including the Seoul Station Exchange Center, and Shinhan Bank closed four stores, Garak-dong and Guro Station.

The number of stores in the five major commercial banks, including Shinhan, Hana, Woori and Nonghyup, has shrunk by nearly 500 in three years from 4,425 in 2020 to 3,931 in the third quarter of last year. The spread of digital-based non-face-to-face transactions is cited as the biggest reason for the merger of banks' stores.

 

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