Bank defends Seoul's first and second treasury accounts, then Incheon's first — cementing its lead in public fund management
Nara Love Card, University of Seoul treasury also secured; court deposit bank selection draws attention
Shinhan Bank has again demonstrated its strength in public fund management, successfully defending both the Seoul and Incheon city treasury accounts.
The bank retained operating rights to Seoul's first and second treasury accounts — which handle an annual volume of more than 50 trillion won ($36.5 billion) — in May, and on Thursday was named the preferred negotiating partner for Incheon's first treasury account.
Shinhan Bank first made waves in 2018 when it unseated Woori Bank, which had managed the Seoul city treasury for more than a century, in a competitive selection process. It has since held on to the Seoul treasury contract in successive rounds, firmly establishing itself as the city's primary treasury bank. Seoul announced in May that Shinhan Bank received the highest scores for both the first and second treasury accounts following a review by the city's treasury designation committee.
Shinhan Bank and Woori Bank submitted proposals for the first treasury account, while KB Kookmin Bank, Shinhan Bank, Woori Bank and Hana Bank all bid for the second. Shinhan Bank scored 973.904 points for the first account and 925.760 for the second, topping both categories. The Seoul city treasury manages an annual volume of about 51 trillion won.
Shinhan Bank also held on to the Incheon first treasury account. Incheon convened its treasury designation committee on Thursday and named Shinhan Bank as the preferred negotiating partner for the first account. The selected partner will finalize a contract with the city within 20 days of the selection date after discussing the proposal details and specific terms.
Under the new arrangement, Shinhan Bank will manage Incheon's first treasury account for four years from 2027 through 2030, extending its unbroken run — which began in 2007 — to 24 years.
Incheon's first treasury account covers general accounts, public enterprise special accounts and funds, with an annual operating volume of about 17 trillion won ($12.4 billion).
Shinhan Bank and Hana Bank competed for the contract. Hana Bank made its pitch partly on the strength of Hana Financial Group's planned relocation to Incheon's Cheongna district, but could not overcome Shinhan Bank. NH NongHyup Bank, the sole applicant for Incheon's second treasury account — which handles special accounts and related funds — was named preferred negotiating partner for that slot.
Shinhan Bank was earlier selected as the operator of the third-generation Nara Love Card program, covering 2026 through 2033, and in July signed an agreement to manage the University of Seoul's treasury for four years starting in 2027.
Attention in the financial sector is now turning to the selection of court deposit banks.
The Court Administration Office is choosing new deposit banks for 17 courts nationwide whose contracts expire at the end of this year. The key question is how much of its existing business Shinhan Bank — which has long dominated the court deposit market — will be able to retain.
Having successfully defended major municipal treasury accounts in Seoul and Incheon, Shinhan Bank is also well-positioned in the ongoing competitions for district treasury accounts in Gangnam, Seocho and Seongdong-gu.
seouldream01@heraldcorp.com
