Number of bank branches falls for 6th consecutive year in 2024

ATM of various bank branches are installed at a building in Seoul, April 27. Yonhap

The number of bank branches fell for the sixth year in a row in 2024 amid the popularity of mobile and online banking services, data showed Wednesday.

Korean banks ran 5,792 branches at home and abroad combined as of end-December, down 57 from a year earlier, according to the data compiled by the Bank of Korea (BOK).

The figure has been on a constant decline since September 2018.

Banks have opted to shut down branches as part of cost-cutting measures as more customers prefer mobile and internet banking.

The pace of branch closures appears to be accelerating this year.

According to industry officials, the number of domestic branches operated by the five major banks — KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup — stood at 3,766 as of the end of the first quarter, down 76 from the previous quarter.

In contrast, the number of overseas branches operated by these banks has remained nearly unchanged, with 1,165 as of end-September, 1,169 at the end of December and 1,168 as of end-March.

"We are strategically adjusting the number of our branches in response to changing customer behavior and to enhance operational efficiency," a KB Bank official said.

Hana Bank said it is working to increase the number of regionally specialized branches, as well as those tailored to senior citizens, foreigners and other financially vulnerable groups, as part of efforts to boost operational efficiency and improve financial accessibility.