Commercial bank cash machines across South Korea fell 15.7% between end-2022 and June 2026, dropping from 29,321 to 24,711 units, according to Financial Supervisory Service (FSS) data released by lawmaker Seo Il-jun on September 9, Chosun Daily reports.

The steady contraction of physical banking infrastructure threatens to cut off rural and elderly populations from basic financial services, as lenders aggressively close branches and trim offline networks to offset declining cash usage.

Over the same three-and-a-half-year period, total bank branches fell 4.9% from 5,657 to 5,381. The sharpest ATM reductions occurred outside the capital region. The industrial hub of Ulsan led all regions with a 21.5% drop, followed by South Gyeongsang and Jeju, which both recorded a 20.8% decrease. Capital areas experienced milder cuts, with Seoul and Gyeonggi dropping by around 15%, while Sejong saw the lowest reduction at 9.0% and Daejeon fell 13%.

In the six months to June, banks removed a further 636 ATMs, representing a 2.5% m/m decline. Citibank Korea recorded the largest retreat across the sector, cutting its machine footprint by 46%. Amongst major domestic lenders, NH Nonghyup Bank eliminated 1,110 terminals (21.8%) and Shinhan Bank removed 1,020 units (21%). Hana Bank maintained its network, removing just 44 terminals (1.3%).

To mitigate the rapid loss of physical access, financial regulators are trialling shared multi-bank ATMs and launching a banking agency arrangement that allows postal offices to deliver core transaction services in underserved regions.