Five bank chiefs: “We will carefully review branch closures and pay attention to the difficulties faced by financially vulnerable groups”

[Financial News] The heads of the country’s five major commercial banks said they would carefully review the closure of offline branches and work to reduce the difficulties financially vulnerable groups face when using banking services. The remarks came in response to criticism that, while emphasizing inclusive finance, the banks were reducing access for financially vulnerable groups by cutting branches.
The heads of the five major commercial banks responded this way at a parliamentary audit by the National Assembly’s Political Affairs Committee in Yeouido, Seoul, on the 19th, after Rep. Kim Jae-seop of the People Power Party criticized them, saying, “Commercial banks are making a lot of money while reducing offline branches.”
Kim presented data on changes in the number of bank branches in Seoul’s Dobong District over the past 10 years and pointed out that branch reductions are making it harder for older people to use banks. Since many customers still have difficulty using mobile banking, he called on banks to play a role befitting inclusive finance. Kim said, “It is hard not to question what efforts commercial banks are making for financially vulnerable groups.”
Shinhan Bank CEO Jung Sang-hyuk said, “I agree with the point you raised,” explaining, “We significantly reduced the number of branches through 2021, but have paused for now since concerns have been raised about our social responsibility and public role.” He added, “We will give the concerns you raised careful consideration and review them thoroughly.”
Lee Hwan-ju, head of KB Kookmin Bank, also said the bank would look into the need to keep branches in underserved areas. “We closed around 60 branches a year through 2023, but branch closures have leveled off from 2024 to 2026,” he said. “We will give further thought to branch closures in underserved areas and try to keep those branches open.”
Hana Bank CEO Lee Ho-sung said, “We have barely closed any branches over the past four years,” adding, “We will bear this in mind going forward and work to ensure customers are not inconvenienced.”
Woori Bank CEO Jung Jin-wan said the bank would review its strategy linking branch operations with inclusive finance. Jung said, “We will redraw our branch strategy and related plans in line with the spirit of inclusive finance.”
Nonghyup Bank CEO Kang Tae-young described the bank’s relatively high share of branches outside the Seoul metropolitan area and said it would work to protect financially vulnerable groups. “Of our 1,100 branches, 41 have closed in the past five years,” Kang said. “Since at least 70% of our branches are outside the Seoul metropolitan area, we will do everything we can to protect financially vulnerable groups.”
[email protected] Lee Hyun-jung Reporter