NH NongHyup Bank was selected as the official first depository bank operating institution for the Jeonnam-Gwangju Integrated Special City. Gwangju Bank, which had aimed to be the first depository bank, will take on the role of second depository bank following its appointment as interim depository bank. It is interpreted that the change in the ordinance to specify store distribution in detail and the difference in store networks including regional agricultural cooperatives determined the outcome.
The Jeonnam-Gwangju Integrated Special City held a depository designation review committee on the 26th, selecting NH NongHyup Bank as the first depository bank and Gwangju Bank as the second depository bank. The contract period runs from January 2027 to December 2030.
Prior to integration, NH NongHyup Bank operated as the first depository bank for Jeonnam Province, while Gwangju Bank operated as the first depository bank for Gwangju City. With administrative integration pitting the two existing first depository operating institutions against each other for a single position, in the interim depository selection last May, NH NongHyup Bank was selected as the first depository bank and Gwangju Bank as the second depository bank, managing finances from the integrated city's launch date of July 1 through the end of this year.
With this official depository selection, NH NongHyup Bank will be responsible for the general account, regional development fund, and administrative integration financial support funds for the next four years. Gwangju Bank will manage special accounts and funds.
The integrated city's budget for next year is expected to exceed 2.5 trillion won. This figure is based on a scale that adds the government's annual 500 billion won administrative integration financial support fund to the combined 2.08 trillion won of Gwangju City's current-year budget of 810 billion won and Jeonnam Province's budget of 1.27 trillion won.
The change in evaluation criteria to reflect sales network distribution by city, county, and district is assessed as a major factor in NH NongHyup Bank retaining the first depository position. The Integrated City Council amended the "Ordinance on Designation and Operation of Depositories" on September 11 last month to evaluate not only the simple number of branches, unmanned stores, and ATMs (Automated Teller Machines) installed, but also how evenly the sales network is distributed across Gwangju's five autonomous districts and Jeonnam's 22 cities and counties.
While Gwangju Bank leads in the number of stores, NH NongHyup Bank holds a scoring advantage when distribution is taken into account. This is because NH NongHyup Bank has sales networks in all 22 cities and counties of Jeonnam, whereas Gwangju Bank has no stores in three counties: Gokseong, Gure, and Jindo.
The evaluation scoring for this depository selection consists of a total of 100 points, broken down as follows: creditworthiness and financial structure stability at 27 points, loan and deposit interest rates at 20 points, resident convenience at 24 points, depository business management capability at 22 points, and regional community contribution and cooperative projects at 7 points. Stores are directly linked to "resident convenience."
Additionally, it is analyzed that including the performance of regional agricultural cooperatives in NH NongHyup Bank's evaluation also had an impact. In terms of its own store count, Gwangju Bank has a total of 103 stores (67 in Gwangju and 36 in Jeonnam), which is more than NH NongHyup Bank's total of 93 stores (29 in Gwangju and 64 in Jeonnam). However, if the 580 stores of regional agricultural cooperatives are included, the broader NongHyup side's store count expands to 673. Nevertheless, whether regional agricultural cooperative performance was reflected has not been immediately disclosed regarding this depository selection result, so it cannot be definitively stated that it influenced the outcome.
The issue of including regional agricultural cooperatives has been a point of contention between the two banks since the interim depository selection in May last year. At that time, the Gwangju City and Jeonnam Province Depository Selection Evaluation Committee reflected the number of regional agricultural cooperative stores in the evaluation after a vote. It did not reflect the regional community contribution performance of regional agricultural cooperatives. Gwangju Bank had warned of legal action, arguing it was unfair to include the performance of regional agricultural cooperatives, which are separate legal entities, in NH NongHyup Bank's evaluation, but subsequently suspended this plan.
An official from NH NongHyup Bank said, "I believe this result came about because our overwhelming depository management capabilities and the roles we have consistently played in the Jeonnam-Gwangju region were recognized," adding, "Going forward, as the primary depository bank, we will make every effort for the success of the Jeonnam-Gwangju Integrated Special City."
in FINANCE
