Seoul: The number of bank branches fell for the sixth consecutive year in 2024, reflecting the growing preference for mobile and online banking services, data revealed on Thursday. South Korean banks operated a total of 5,849 branches both domestically and internationally as of the end of September, marking a decrease of 53 branches from the previous year, according to data compiled by the Bank of Korea (BOK).

According to Yonhap News Agency, the decline in the number of branches has been continuous since September 2018. The full data for the entire year of 2024 is still pending release. The trend is largely attributed to banks adopting cost-reduction strategies, which include closing physical branches, as an increasing number of customers favor digital banking solutions.

In response to this ongoing reduction in physical bank locations, authorities have introduced guidelines for branch closures to mitigate potential inconvenience for customers. Additionally, banks are being encouraged to develop strategies that enhance customer access to banking services, despite the reduction in branch numbers.