South Korea’s banking sector is pulling back sharply on cash machines, raising concerns about financial access for seniors and low-income households.
According to government data released Sunday, the number of ATMs nationwide dropped from about 33,700 in 2020 to 26,000 as of July, a decline of 22.9% over four and a half years.
The steepest reductions came in Ulsan (down 28.4%), North Gyeongsang (27.3%), South Gyeongsang (27.1%), Busan (26.7%), and Daegu (25.4%). Even Seoul, the capital, saw nearly a 24% decline.
Among the country’s top five lenders, KB Kookmin Bank led the cuts, slashing its network by 1,583 machines, or 27.4%, to about 4,200 ATMs. Woori Bank (24.8%), NH NongHyup (23.6%), and Shinhan Bank (23.6%) followed, while Hana Bank cut just 6.3%.
The shift reflects a broader digital banking push, with lenders shuttering physical branches and encouraging customers to use mobile apps and online platforms.
To ease concerns over access, KB Kookmin, Shinhan, Hana, and Woori — along with the Korea Federation of Banks — began installing shared ATMs in traditional markets last year to help elderly customers and support local economies.
But so far, only four shared machines have been deployed, in Samcheok, Cheongdo, Buan, and Taean.
Regulators pledged in March to expand shared ATMs to government offices, community centers, and large retailers, while letting banks classify operating costs as part of their social contributions. Progress, however, has been slow.
“Offline branches and ATMs are disappearing, but alternatives for financially vulnerable groups remain lacking,” said lawmaker Choo Kyung-ho, urging regulators to speed up the rollout of joint ATMs and designate more financial service agents.
