Nonghyup Bank Selected as Next Depository Bank for Busan's Gijang County

[Financial News] Nonghyup Bank has been selected as the next depository bank for Busan's Gijang County. The bank will manage the county's general account, special accounts and various funds together for four years, from January 1 next year through December 31, 2030.
According to Gijang County on the 13th, the county recently convened a committee to review the designation of its next depository bank. Based on the committee's findings, it finalized Nonghyup Bank's selection and announced the result on the 10th.
In this designation, the county secured a 3.62% interest rate on time deposits of one year or longer, among the highest rates offered by the primary depository banks of Busan's 16 districts and counties. The county said it focused on negotiating financial terms, noting that, given the characteristics of its fund disbursements, time deposits of one year or longer account for the largest share of its deposits.
As a result, as of early this month, it secured one of the highest interest rates among the primary depository banks of Busan's 16 districts and counties. The county expects this to help maximize interest income from managing idle funds after the agreement takes effect on January 1 next year, thereby improving the efficiency of its fiscal management.
The contribution for cooperation projects was also set at 1.2 billion won, a 33.3% increase (300 million won) over the previous agreement period. In particular, the county improved on the previous arrangement of making contributions in annual installments over four years and agreed to receive the full 1.2 billion won in a lump sum next year, which is also expected to increase tax revenue.
All of the funds secured will be allocated to the Gijang County Scholarship Fund and immediately put toward programs to foster local talent and support educational welfare.
The head of Gijang County's Tax Division 2 asked Nonghyup Bank, "In addition to contributing to cooperation projects, it is important that the financial institution operating the county's depository bank fulfill its responsibilities and role in the local community. We hope you will expand various community reinvestment programs and social contribution activities."
County Chief Woo Seong-bin said, "While saving on the budget is important for the welfare of county residents, it is also important to use the funds we have secured efficiently to achieve greater fiscal results. Through a fair and transparent process, we secured the highest deposit interest rate and achieved a lump-sum contribution for cooperation projects among the primary depository banks of Busan's 16 districts and counties. We will make early use of the funds secured under the best preferential terms by allocating them to the scholarship fund, and work to realize educational welfare centered on county residents."
[email protected] Byun Ok-hwan Reporter