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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL, South Korea – October 21, 2025 – Bank branch closures across South Korea are accelerating, raising concerns over growing “financial desertification” in rural and smaller cities as financial institutions concentrate their networks in Seoul’s affluent districts, particularly the Gangnam area.
According to data obtained by Rep. Huh Young of the National Assembly’s Political Affairs Committee from the Financial Supervisory Service (FSS), nearly one in four financial branches — including those of banks, insurers, and securities firms — has closed over the past five and a half years (2020–June 2025).
The four major commercial banks (KB Kookmin, Shinhan, Hana, and Woori) currently operate 2,688 branches, down 26% after closing 937 locations. The five largest life insurers shut 484 of 1,959 branches (20%), while nine leading securities firms closed 233 of 407 branches (36%) during the same period.
Despite strengthened branch closure guidelines introduced in 2021 by the Korea Federation of Banks, the downsizing trend persists. After briefly slowing in 2023, closures have resurged this year, with 103 additional branches shuttered as of September 2025.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
