Chohung Bank has a rich history dating back to 1899, making it one of the oldest banks in Korea. It has undergone significant transformations over the years, adapting to the changing financial landscape.
Chohung Bank's legacy is built on its commitment to serving the Korean people, with a focus on community banking. This approach has allowed the bank to establish a strong presence in the local market.
Chohung Bank's assets have grown steadily over the years, reaching a total of 52.2 trillion KRW in 2020. This growth is a testament to the bank's ability to navigate the complexities of the financial industry.
Despite its success, Chohung Bank faces potential challenges in the highly competitive Korean banking market.
Bank Location
Chohung Bank has a significant presence in South Korea, with branches located throughout the country.
You can find Chohung Bank branches in major cities like Seoul, Busan, and Daegu.
Chohung Bank's head office is located in Seoul.
Their extensive network allows customers to access banking services easily.
Potential Issues
The current situation at Chohung Bank is causing great inconvenience for customers. Over 52% of the bank's branches have suspended business due to strikes, leaving many without access to their money.
Customers are withdrawing large amounts of cash from ATM machines, which is exacerbating the bank's cash flow issues. It's estimated that some 800 to 900 billion won was withdrawn from the bank on June 20 alone.
The bank's remaining deposits have been reduced by 5 trillion and 480.9 billion won, from 48 trillion and 30.7 billion won on June 11 to 42 trillion and 549.8 billion won on June 19.
Big companies like Kumho and Lotte Group, which use Chohung as their major credit bank, are scrambling to find alternative measures in case the bank's electronic network is paralyzed. This could lead to serious consequences for these companies.
The Supreme Court in Seoul, which is a big customer of Chohung Bank, is also at risk of being affected by the current situation. They may experience confusion when paying for various deposits and security money, as well as auction payments.
If Chohung Bank's normal business rate falls below 25%, the Financial Supervisory Committee has decided to have other banks serve as an alternate. This is a precautionary measure to prevent any further disruptions.
For more insights, see: In a Fractional Reserve Banking System Banks Create Money Because
Sources
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