Bank of Korea to start QR code-based ATM deposit, withdrawal this year

Bank of Korea in central Seoul [JOINT PRESS CORPS]

Korean bank account holders will be able to deposit and withdraw money from automated teller machines (ATMs) within the year by using a mobile cash card built into their smartphones and scanning a QR code.

South Korea’s central bank on Thursday announced plans to introduce a QR code-based ATM deposit and withdrawal service this year in addition to the existing near-field communication-based service.

“We plan to complete the development of relevant technology that can apply standards at Korea Financial Telecommunications and Clearings Institute by September and implement the service between November and December,” said Lee Han-nyeong, head of the Bank of Korea’s Payment & Settlement Systems Department.

The central bank expects this service to greatly improve consumer convenience as QR codes are recognized by all local ATMs and can be used regardless of smartphone models. Currently, bank account holders cannot use their mobile cash cards at ATMs that are not enabled with NFC. At the end of last year, 57 percent of 106,000 ATMs across the country are not NFC-enabled.

In addition, they can use a mobile banking app to make deposits and withdrawals only at ATMs of a bank where they have an account, which causes great inconvenience. Furthermore, if their phones are not Android-based, they cannot use an ATM using a mobile cash card. When the service is available, iPhone users will be able to make deposits and withdrawals at Bank B ATMs using the mobile cash card of Bank A in their mobile phones.