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Photo=KB Kookmin Bank |
[Alpha Biz= Paul Lee] More than 1,000 offline bank branches have shut down in South Korea over the past five years, with the country’s five major commercial banks—KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup—leading the closures.
KB Kookmin Bank alone shut down over 250 branches during this period. While banks cite digital transformation as the primary reason, consumers have expressed dissatisfaction, citing reduced accessibility and convenience.
According to the Korea Federation of Banks, as of the end of 2023, the total number of offline bank branches across 17 domestic banks stood at 5,628, down from 6,708 at the end of 2019. This represents a reduction of 1,080 branches, or 16.1% of total branches. The annual pace of closures, which had slowed to 53 in 2023, rebounded to 116 last year.
The five major banks, which once maintained extensive branch networks nationwide, have been at the forefront of this trend. KB Kookmin Bank reduced its number of branches by 251, the largest decrease among all banks.
In 2019, both KB Kookmin and NH NongHyup Bank operated over 1,000 branches. However, while NH NongHyup Bank maintained over 1,000 locations after closing just 72 branches over five years, KB Kookmin’s branch count fell to around 800.
Shinhan Bank and Woori Bank each closed 191 and 190 branches, respectively, while Hana Bank shut down 122 branches over the same period.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
