Shinhan Bank Successfully Retains Incheon City’s Primary Treasury Account, Upholding a 24-Year Legacy

Shinhan Bank has successfully secured the operating rights for Incheon Metropolitan City’s primary treasury account, firmly maintaining its position as the traditional custodian of the city’s funds for 24 years despite fierce competition. The city recently held a Treasury Designation Review Committee meeting and announced that Shinhan Bank was ultimately selected as the primary operator for the general account and the public enterprise special account. Following this selection, Shinhan Bank will take on the significant responsibility of stably managing the city’s substantial finances for approximately five years, from early next year through the end of 2030. This case serves as a prime example of the intense battles for retention unfolding among financial institutions in the metropolitan public treasury market. In this article, we will take a detailed look at the background and evaluation process behind how Shinhan Bank managed to retain Incheon City’s primary treasury account.

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Shinhan Bank Successfully Retains Incheon City’s Primary Treasury Account, Upholding a 24-Year Legacy

1. The Protagonist of Retaining Incheon City’s Primary Treasury Account

Shinhan Bank succeeded in defending its operating rights for Incheon City’s primary treasury account in a formidable contest with Hana Bank. In this treasury designation process, Hana Bank also submitted a bid, leading to a battle of prestige between the two major banks. For the secondary treasury account, Nonghyup Bank was the sole participant and was ultimately selected after a re-announcement procedure. The review committee was composed of private experts from various fields, including university professors, lawyers, and certified public accountants, as well as city council members. They conducted thorough verification in accordance with the Ministry of the Interior and Safety’s regulations and relevant ordinances. As a result, Shinhan Bank earned the highest score based on the trust it has built over many years and the excellence of its proposal. Operating a local government treasury is not only about attracting massive deposits but also serves as a crucial metric for demonstrating financial influence within the community. In particular, Incheon City’s primary treasury is a core channel handling a massive amount of funds exceeding 14 trillion won, based on this year’s regular budget. The result is significant as it proves the bank’s ability to stably manage assets of such a huge scale. Although Hana Bank deployed considerable resources, it is interpreted that it fell short of overcoming Shinhan Bank’s long-standing expertise. Financial industry insiders evaluate this outcome not merely as a contract win, but as the result of trust cultivated over a long period.

2. A 24-Year History of Partnership Since 2007

Shinhan Bank’s history of managing the treasury with Incheon City dates back to 2007. For a period nearly spanning two decades, the bank has managed the city’s finances without a single major incident. The expertise accumulated through this long tenure as the treasury custodian served as its most powerful asset in this review. For local governments, the stability of budget execution and the professionalism in managing public funds are inevitably the most important evaluation criteria. From the perspective of reducing trial-and-error and preventing administrative gaps that could occur with a new bank, the continuity of the existing operator receives high marks. In fact, from the standpoint of general citizens visiting bank branches, it is convenient in many ways for a familiar financial institution to continue providing services. This is because it reduces confusion in processes such as paying taxes, handling various public utility bills, and receiving local government support funds. Shinhan Bank has operated dedicated counters and specialized products to ensure Incheon citizens can conduct banking business without inconvenience. These meticulous efforts laid the foundation for the high evaluation received from the review committee members. The experience of working in harmony with the community over many years is a valuable asset that cannot be converted into money.

3. Strict and Transparent Evaluation by the Treasury Designation Review Committee

The selection process for Incheon City’s treasury was not determined simply by the bank’s size but went through a very rigorous procedure. The Incheon City Treasury Designation Review Committee included a large number of external experts well-versed in the financial field to enhance fairness. The review items consisted of 20 detailed indicators across 6 areas, dissecting every aspect of the banks. Specifically, the domestic and international creditworthiness and the soundness of the financial structure of the financial institutions were verified as the top priority. In addition, the appropriateness of the loan and deposit interest rates offered to the city also held significant weight. Furthermore, accessibility and convenience, which demonstrate how easy it is for general citizens to use the bank, were also major review targets. The computer management capabilities to perform treasury duties without error and the competence of specialized personnel were also thoroughly checked. Finally, the evaluation reflected the bank’s contributions to the community and the collaborative projects undertaken with the city. Shinhan Bank secured excellent scores evenly across all six areas, outpacing its competitors. It proved that only thorough preparation can win in the face of transparent and objective indicators.

4. Massive Budget Scale and Future Schedule

The scale of the funds handled by Incheon City’s primary treasury, which Shinhan Bank has retained, is unimaginably huge. Based on this year’s regular budget, the total amount for the general account, public enterprise special account, and funds managed by the primary treasury reaches approximately 14.4527 trillion won. The structure is such that the majority of Incheon City’s finances are executed and managed through Shinhan Bank. Along with this, the scale of the other special accounts handled by Nonghyup Bank, selected as the secondary treasury, also exceeds 2 trillion won. Safely managing such massive public funds is a critical mission that determines the flow of the regional economy. Based on the review results, Incheon City plans to sign the official agreement for the next city treasury designation next month. Once the agreement is signed, Shinhan Bank will officially serve as the treasury custodian for five years, from January 1 next year to December 31, 2030. During this period, the bank plans to cooperate closely with the city to ensure transparent fund execution and efficient budget management. It is also expected to play a catalytic role in injecting vitality into the regional economy as massive funds are tied up and released. Since the budget is composed of citizens’ valuable tax money, it comes with the heavy responsibility of allowing no room for sloppiness.

5. Contribution to the Regional Economy and Future Commitments

Shinhan Bank has expressed a strong will to further strengthen its partnership with Incheon City on the occasion of retaining the treasury account. A bank official stated that, based on the expertise accumulated over the years, the bank will expand financial benefits that Incheon citizens can feel. The plan is to contribute substantively to regional economic growth, going beyond the role of simply storing and disbursing funds. The bank is also considering measures to support small and medium-sized businesses in the Incheon area and to activate special loan products for small and medium enterprises. It aims to establish itself as a bank loved by local residents by faithfully performing its role in public finance. The cooperation between local governments and commercial banks has a significant impact on the development of infrastructure across the entire community. Shinhan Bank has actively participated in various public interest projects of Incheon City, serving as a reliable partner for the community. It plans to maintain this approach over the next five years, contributing to job creation and cultural and artistic support projects. The bank is committed to taking the lead in creating a virtuous cycle where bank profits are returned to the community. This sincere approach is expected to serve as a positive reference in future treasury bidding processes for other local governments.

6. The Significance and Future Outlook of the Public Treasury Market

The result of the competition for Incheon City’s primary treasury account shows how much commercial banks in South Korea value the public treasury market. Local government treasuries are not only a means to secure massive deposits but also the ultimate marketing tool for enhancing brand credibility. The ability to stably manage public funds worth trillions of won itself serves as a badge proving the bank’s stature. It is expected that behind-the-scenes competition among banks will become even more intense every time the terms of major treasuries in the metropolitan area or large cities come up for renewal. Beyond simply offering interest rate conditions, the index of symbiosis with the local community will become a key variable determining the outcome. Readers should also take an interest in how the budgets of large local governments are managed and which financial institutions support them. This is because the flow of public funds is closely linked to daily life, such as the expansion of welfare facilities or road construction in our neighborhoods. We look forward to Shinhan Bank maintaining its original intent and providing more transparent and friendly financial services during its upcoming term. We need the wisdom to not let economic news around us pass as mere information but to grasp the meaning behind it. We hope that a healthy ecosystem is created where financial institutions with solid finances and trust coexist and thrive with local communities.

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