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More than 14,000 ATMs pulled from service since 2018
ATMs of various banks are installed at a building in Seoul, March 13. Newsis
By Jun Ji-hye
Although financial authorities have been working to prevent the arbitrary closures of banking facilities to ensure that consumers still have access to financial services, automatic teller machines (ATMs) have been disappearing at a rapid pace in recent years as financial institutions cut costs, according to a ruling party lawmaker, Tuesday.
Rep. Kang Min-kuk from the People Power Party said that the banks’ decision to withdraw ATMs overlooks the financial challenges for older adults and other disadvantaged groups, who often find cash machines easier to use than smartphone apps or bank websites.
He disclosed the report submitted by the Financial Supervisory Service, which shows a total of 14,426 ATMs have been removed from banks across the country from 2018 to June this year.
Banks have been withdrawing an increasing number of ATMs, citing maintenance costs and other expenses.
While the reduction of ATMs may seem natural, given the rapid rise of mobile banking and the decrease in cash usage, their removal, coupled with the increasing closures of bank branches, inevitably lowers accessibility and convenience for elderly customers and other groups who are less familiar with digital devices.
According to the FSS report, about 1,003 bank branches closed from 2018 to June this year. In particular, between 2020 and 2022, more than 200 branches closed annually.
But the pace has significantly slowed as 97 branches closed in 2023 and 43 were shuttered during the first six months of this year. This was attributed to measures implemented last year by the financial authorities to make the process of closing bank offices more complicated.
Shinhan Bank leads the list with 179 closed branches, followed by Woori Bank with 161 and Kookmin Bank with 159. Hana Bank has also closed 159 branches.
“Despite not operating at a loss, banks have been closing branches and removing ATMs in large numbers, citing cost efficiency and an increase in digital banking transactions,” Rep. Kang said.
“This disregards the public responsibility banks should uphold, and the accessibility needs of older adults and other financial consumers.”
The lawmaker urged financial authorities to rigorously verify if banks are faithfully following branch closure procedures and to broaden the scope of penalties for such actions.