Shinhan Bank has retained its role as the main treasury bank for Incheon, handling about 15 trillion won ($10.8 billion) a year. By fending off a challenge from Hana Bank, which had touted Hana Financial Group's relocation to Cheongna, Shinhan will manage the city's funds for four more years, extending a run that began in 2007.
Incheon's treasury selection committee met on the 17th and picked Shinhan Bank as its first treasury bank and NH NongHyup Bank as its second for the 2027-2030 period, according to financial industry sources.
Shinhan and NH NongHyup have held the first and second treasury roles, respectively, since 2007, and both kept them this time. The first treasury manages about 15 trillion won covering the general account, special accounts for public enterprises and funds, while the second handles about 2 trillion won in other special accounts.
Shinhan highlighted the operational experience, IT capabilities and record of regional financial support it has built up over years of running the city treasury. The bank also pointed to 500 billion won in financial support channeled through bodies including the Incheon Credit Guarantee Foundation, as well as community programs such as Shinhan Square Bridge Incheon, a startup incubation platform.
Hana Bank bid for the first treasury role on the strength of Hana Financial Group's relocation to Cheongna, which got under way in earnest this month, and a broader commitment to the region. Along with the move of major affiliates to Cheongna, the bank recently pledged 350 billion won in financial support for small business owners and low- and middle-income residents in Incheon, but it failed to overcome Shinhan for a second time after 2022.
The review assessed each bank's credit standing, financial stability, convenience for residents, treasury management capacity, interest rates and contributions to the local community. The committee examined 20 detailed items across six categories based on the proposals and presentations submitted by each bank. Starting this year, scoring was made more discriminating on interest rates and community contribution records.
With Incheon following its retention of the Seoul city treasury in May, Shinhan has solidified its position among major local government treasuries in the greater Seoul area. "Drawing on the stable treasury management experience we have accumulated and top-tier financial capabilities, we will work to further improve financial convenience for Incheon residents," the bank said. "We will do our utmost to keep contributing to Incheon's economic growth and regional development."
Incheon plans to sign treasury agreements with Shinhan Bank and NH NongHyup Bank next month. Separately, in North Gyeongsang Province's treasury selection announced the same day, NH NongHyup Bank and iM Bank retained the first and second treasury roles, respectively.
