The Number of ATMs in South Korea Continues to Decrease
If it feels like there are less ATMs to use in South Korea you would be right because their numbers are decreasing due to banks losing money trying to maintain them:
As the bankbook fades in popularity, ATMs are beginning to vanish as well. According to the Financial Supervisory Service, the number of ATMs run by domestic banks peaked at the end of 2011 with 56,102 machines and has declined since then, marking 53,562 units last year.
The ATM was first introduced by British bank Barclays in 1967. Back then, ATMs caused as big of a splash in the banking industry as financial technology, or fintech, is making today. As ATMs proliferated, many bank tellers saw themselves becoming redundant. Ironically, as ATMs now fade, the number of bank employees is on rise – to 118,703 last year from 110,529 a year earlier.
One reason for the decline of ATMs is a decrease in bank branches where the machines are installed. Between 2011 and 2014, 64 domestic bank branches and local offices shut their doors, largely due to the rise of internet and mobile banking services.
However, ATMs are disappearing much faster than bank branches. In many cases, this is because the fees charged by the machines are no longer sufficient to make them profitable.
“The income from bank charges made at ATMs isn’t even sufficient for managing the machines, and it is a lot easier to close the machines than to adjust the workforce,” said one business insider. “This is why ATMs installed outside stores are diminishing as well.” [Joong Ang Ilbo]
You can read the rest at the link, but banks are losing about $1,500 a month to each ATM they have. Personally I find myself using ATMs less and less due to using a debit card instead of cash. As mobile payment platforms such as Apple Pay become more popular this will further decrease the need for ATMs.
