Shinhan Bank has been selected to continue managing Incheon City's first treasury, which holds a total of 17 trillion won, for four more years. It successfully defended its position against Hana Bank, which challenged the role alongside the group's relocation to Cheongna.
According to financial industry sources on the 17th, Incheon Metropolitan Government selected Shinhan Bank as the first treasury bank and NH NongHyup Bank as the second treasury bank for the next term. The two banks will manage Incheon City's finances from 2027 through 2030, a four-year period.
The general accounts, special accounts for public corporations, and funds managed by the first treasury are estimated at 15 trillion won. Based on the main budget, this includes 13 trillion 306.1 billion won from general accounts and special accounts for public corporations, plus an annual operating fund of 2 trillion 500 billion won. The second treasury covers other special accounts with a scale of 2 trillion 198 billion won.
Incheon City's treasury selection was considered one of the most competitive battles in institutional investor operations in the second half of this year. Unlike the second treasury, where only NongHyup Bank submitted a bid, the first treasury drew attention as a showdown between Shinhan Bank, which had served as treasury manager for 20 years, and new challenger Hana Bank.
Managing the city treasury offers the advantage of acquiring massive institutional investor funds at low cost. Budgets from local governments, operating funds, and various funds will flow into the bank. This allows the bank to reduce funding costs and enhance competitiveness. Additionally, holding the title of city treasury management bank provides an advantageous position in retail operations within the region.
Shinhan Bank inherited the treasury role from Hanmi Bank, which had exclusively managed Incheon City's treasury for a long period, and has been responsible for operating the first treasury since 2007. By successfully defending its position as Incheon City's treasury manager, Shinhan Bank secured consecutive wins in Seoul's first and second treasuries in the first half of the year, further demonstrating its strength in institutional investor operations.
Competitor Hana Bank actively promoted its contributions to regional economic growth and mutual development by relocating its headquarters and 10 group companies to Cheongna. However, analysis suggests that Incheon City placed greater emphasis on financial management stability and awarded higher points to Shinhan Bank, which had reliably managed the treasury for an extended period.
Notably, last month when Incheon City simultaneously transitioned its large-scale local government computer network following administrative restructuring, Shinhan Bank successfully completed the process without errors through a 24-hour collaborative system. Additionally, through the startup incubation platform 'Shinhan Square Bridge Incheon', it supported 352 companies up to last year, achieving results in job retention and creation of 6,393 positions and attracting investments totaling 429.8 billion won.
Furthermore, within the financial industry, there is an interpretation that since the schedule for selecting Incheon City's treasury bank was somewhat delayed, continuing with the existing management bank helped enhance the stability of financial management.
A Shinhan Bank official stated, "Based on our accumulated experience in stable treasury operations and top-tier financial capabilities, we will strive to further improve financial convenience for Incheon citizens." He added, "We will do our utmost to continue contributing to Incheon's economic growth and regional development."
in FINANCE
