A bank branch in Seoul / Yonhap
The number of bank branches operated by major lenders in South Korea fell to another low in 2025 amid the growing popularity of mobile and online banking services, data showed Tuesday.
Five major commercial banks — KB Kookmin Bank, NH NongHyup Bank, Shinhan Bank, Woori Bank and Hana Bank — operated a combined 3,748 branches as of end-December, down 94 from a year earlier, according to data from the lenders.
The figure has been on a steady decline in recent years, compared with 4,424 branches in 2020.
Banks have shut down branches as part of cost-cutting efforts as more customers shift to mobile and internet banking.
"The consolidation and closure of branches have become inevitable as the use of physical branches has been declining amid the expansion of non-face-to-face financial services," a bank official said. "Over the past five years, both branch workloads and the number of visiting customers have fallen by more than 30 percent."
Critics, however, say the reduction in branches is increasing inconvenience for older adults and other offline customers, while questioning whether such measures are operationally inevitable, given banks' recent massive profits.
The combined net profit of KB, Shinhan, Hana and Woori reached a record 13.99 trillion won ($9.67 billion) last year, with most of the earnings coming from interest income, according to their regulatory filings.
The number of ATMs operated the banks has also declined sharply in recent years.
According to the data by the Financial Supervisory Service, 16 banks, including the five major lenders, operated a combined 29,810 ATMs as of end-June in 2025, down 1.89 percent from the end of 2024.
Source: Korea Times News
