INCHEON — Shinhan Bank (000010) has retained its position as the primary treasury bank for Incheon, fending off a strong challenge from Hana Bank.
The city held a treasury designation review committee meeting on the 17th and, after evaluating proposals, selected Shinhan Bank as the preferred bidder for the primary treasury account. The decision extends the bank's management of the city's treasury, held since 2007, by another four years, giving it 24 years in the role through 2030.
For the secondary treasury account, the city reappointed NH Nonghyup Bank, the sole bidder in both the first and second rounds of open bidding, following the committee's review.
The committee assessed five categories: the creditworthiness and financial stability of the institutions, lending and deposit rates, convenience for residents, treasury management capability, and contributions to the local community.
Shinhan Bank was seen as outperforming rivals in the stability of its links to the city's tax administration network built over 20 years of managing the treasury, its dense branch network across Incheon, and its experience handling public funds.
From Jan. 1, 2027, through Dec. 31, 2030, Shinhan Bank will oversee city finances of 15 trillion to 16 trillion won ($10.8 billion to $11.5 billion) a year, covering the general account, special accounts for public enterprises and funds. NH Nonghyup Bank, handling the secondary account, will manage other special accounts worth 1 trillion to 2 trillion won ($720 million to $1.4 billion).
Incheon plans to publish the treasury designation notice based on the evaluation results and sign formal treasury agreements with each bank in October.
