The Bank of Korea stated that it must be cautious about the reduction of automated teller machines (ATMs) to maintain cash accessibility for residents of rural and fishing areas.
The Bank of Korea noted on the 18th that this opinion was discussed at the '2025 second half currency distribution system relevant agency council' held on the 14th at its headquarters.
At the meeting, alternatives to supplement cash accessibility in rural and remote areas were mentioned, including convenience store ATMs, shared ATMs, and cashback services, amid a decline in traditional bank branches. Participants agreed that "expanding shared ATMs among financial institutions and revitalizing convenience store cashback services are effective means to maintain public cash accessibility," and emphasized the need for relevant agencies to closely cooperate to further activate these measures.
Private companies responsible for cash transport and non-financial ATM operators have recently complained about deteriorating revenue as cash usage declines. They stated, "Given the circumstances, we inevitably have to respond by diversifying our business into sectors other than cash handling or streamlining our workforce, and policy support is needed to continue cash handling operations."
The Bank of Korea shared results of an analysis comparing cash usage trends across countries, analyzing the characteristics of South Korea. According to the analysis, South Korea displays similar behaviors to Japan, Germany, Spain, and Italy, which have a high ATM installation rate and a distinct preference for cash. Accordingly, the Bank of Korea assessed that "the cash usage in our country is likely to decline gradually rather than sharply, stabilizing at a certain level."
Trends related to currency supply and demand were also discussed at the meeting. As of the end of the first quarter, the currency issuance balance was recorded at 197 trillion won, showing that the net issuance trend centered around 50,000 won notes has continued since the fourth quarter of 2023. The Bank of Korea explained, "Recently, the demand for 50,000 won notes for reserve and value preservation purposes has expanded due to falling market interest rates." In contrast, demand for low-denomination notes used for transactions has seen little fluctuation.
While the circulation of coins has increased since 2020, the issuance scale of 10 won coins continues to decrease while maintaining a net issuance trend.
The Bank of Korea emphasized that it will further strengthen the information-sharing and cooperation system among participating institutions to ensure effective policy alternatives can be prepared for maintaining a sustainable currency distribution infrastructure.