Korean banks are tightening their belts amid downgraded growth forecasts and a poor outlook on the corporate sector.

KB Kookmin Bank, the nation’s largest bank, is conducting on-site due diligence to weed out the nonviable branches in an attempt to slim down, while Woori Bank is said to be closing or merging up 20 branches with low profitability, according to financial sources on Thursday.

Hana Bank is expected to close down as many branches, while the Korea Exchange Bank will be focusing on increasing the efficiency of its branches rather than changing the overall number.

The move comes as the local corporate sector has been downsizing to brace for worsening economic conditions at both home and abroad.

The International Monetary Fund has recently downgraded its forecast for Korea’s economic growth to 2.7 percent from the current 3 percent.

Companies like Samsung, SK Group and LG Group have all said they would shed affiliates in an attempt to become fitter and more productive.

As of June this year, the number of branches registered by local banks reached 7,636, which was 62 more than the 7,574 tallied at the end of December last year, according to Financial Supervisory Service figures.

Branch operations have become less active as more and more people are taking care of their banking business online and with their smartphones, but the banks have been adding more branches in rural areas or opening branches with specific purposes, such as those catering specifically to college students, the FSS said.

By Kim Ji-hyun (jemmie@heraldcorp.com)