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Photo = Yonhap news |
[Alpha Biz= Kim Sangjin] The banking sector has begun restructuring its branch networks from the start of the year, resulting in the closure of 90 branches in just the past month. Although financial authorities had planned to establish measures to address the reduction of bank branches by the end of last year, discussions have not yet started, according to reports.
On Tuesday, sources in the financial sector revealed that Shinhan Bank had merged 26 of its branches, including the Seoul Bangbae Business Center and Samseong Station Business Center, into nearby branches. Of these, 17 were located in Seoul. Shinhan Bank also plans to close 13 more branches by April 7, 2025, bringing the total number of branch closures in the first quarter to 39.
Woori Bank also closed 23 branches and three sub-branches across the country, including the Seoul Sejongno Financial Center, as of the previous day. NH Nonghyup Bank has recently consolidated 38 branches. In total, 90 bank branches (including sub-branches) have shut their doors in just one month.
Banks are expected to continue large-scale branch restructuring this year, driven by the increasing use of online banking and the need to reduce operational costs. With about 90% of bank transactions now conducted via mobile banking and other non-face-to-face channels, banks argue that there is no need to maintain costly physical branches, given the high rental costs.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
