Shinhan Bank to Manage Incheon Municipal Treasury for Four More Years; Nonghyup Bank Reappointed as Second Treasury Bank — "Government to Actively Support a New Leap Forward"

[Financial News] Shinhan Bank has been selected as the next municipal treasury bank of Incheon Metropolitan City.
According to financial industry sources on the 17th, Incheon Metropolitan City Government held a meeting of the Municipal Treasury Designation Deliberation Committee that day. After evaluating the proposals, it finalized Shinhan Bank as the preferred negotiating party for the first treasury bank. As a result, Shinhan Bank will extend its management of the municipal treasury, which it has operated since 2007, by four years and retain its position as the first treasury bank through 2030, marking 24 years in total.
Nonghyup Bank, which submitted the sole bid in both the first and second bidding rounds, was reappointed as the second treasury bank following deliberation.
The committee reportedly evaluated five areas: the financial institutions' creditworthiness and financial stability, lending and deposit rates, convenience for citizens, ability to manage treasury operations, and contribution to the local community.
Shinhan Bank is believed to have outperformed its competitors in the stability of its links with the tax administration network, built through 20 years of operating the municipal treasury, as well as in its extensive branch network across the city and experience managing public funds.
For the first treasury bank position, Shinhan Bank's "defend-the-stronghold" strategy competed with Bank of Hope's "locally focused" strategy.
Shinhan Bank's strengths included nearly 20 years of operational experience and the stability of its computer systems, accumulated since it began managing Incheon Metropolitan City Government's first treasury bank in 2007. Its ability to use existing personnel and systems also gave it an advantage by reducing the burden of transitioning operations. Bank of Hope, meanwhile, reportedly made every effort to secure the first treasury bank position by highlighting Hana Financial Group's planned relocation of its headquarters to Cheongna.
Having successfully defended its position, Shinhan Bank will oversee the city's finances from January 1, 2027, through December 31, 2030, including the general account, special accounts for public enterprises, and funds totaling 15 trillion to 16 trillion won annually. Nonghyup Bank, which will manage the second treasury bank, will be responsible for other special accounts in the 1 trillion- to 2 trillion-won range.
Meanwhile, based on the evaluation results, Incheon Metropolitan City Government plans to announce the municipal treasury designation and formally sign treasury agreements with each bank in October.

[email protected] Ye Byeong-jeong Reporter