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Logo of KakaoBank, Kbank, and Toss Bank / Courtesy of each company

All three internet-only banks in Korea — KakaoBank, Toss Bank and Kbank — have begun offering zero-fee transactions for customers using automated teller machines (ATMs). Rather than relying on fee-based revenue, the banks are opting to expand customer engagement through offline support, industry officials said Sunday.

According to Kbank, all transaction fees will be waived nationwide starting April 1. Previously, fees were charged for ATM transactions, except at Kbank's own ATMs, bank-affiliated ATMs and machines inside GS25 convenience stores. With this decision, the number of no-fee ATMs will increase from 49,000 to 60,000.

"As our customer base has grown to 13.4 million, we have expanded the number of eligible ATMs and revised our fee policies to provide broader and more comfortable benefits to more customers," a Kbank official said. "We are also increasing the number of Kbank's ATMs, focusing on major subway stations."

With Kbank joining in, all three internet-only banks now offer nationwide no-fee ATM transactions.

On Jan. 2, KakaoBank extended its zero-fee policies for another year, continuing the approach it has maintained since its establishment in July 2017. As of November 2024, KakaoBank has waived about 374 billion won in fees.

Toss Bank also continues to offer fee-free transactions for all domestic value-added networks and bank ATMs without any time limits.

Their strategies contrast with those of traditional banks, which are reducing ATM operations.

An industry official explained that since internet-only banks do not operate physical branches, they redirect the savings from reduced operational costs directly into customer benefits.

"ATMs are the sole in-person transaction channel for internet-only banks, playing a key role in enhancing customer service," the official said. "Fee-free ATM transactions have now become the industry standard for the internet-only banks, and this policy is likely to continue."