According to the financial sector on Monday, the Seoul Metropolitan Government plans to post a bid notice for the city treasury as early as next month.
With the review process expected to take about a week, the final operator is likely to be chosen within April. Seoul’s total budget this year (general account plus other special accounts) is 49.3579 trillion won, and its funds total 3.7715 trillion won, bringing the annual amount managed to 55.2493 trillion won — the largest among local governments nationwide.
Shinhan Bank currently manages both Seoul’s primary and secondary treasury accounts. Woori Bank handled the Seoul treasury exclusively for 104 years, from the days of the Gyeongseong-bu treasury in 1915 through 2018, before losing the role to Shinhan. The designated bank can secure large volumes of low-cost deposits and related business opportunities, drawing interest from Shinhan, Woori and KB Kookmin Bank.
Shinhan is expected to fight to retain the mandate, even if it requires offering a higher contribution, after making substantial investments during its eight years running the city treasury. The bank has promoted initiatives for Seoul residents, starting with support for small merchants through the “Ttaenggyeoyo” Seoul Delivery Plus program, and continuing with the opening of the Donghaeng Store “Jeongdam,” support for alleyway shopping-district merchant groups, and backing for the Seoul Plaza ice rink.
Woori, long considered strong in institutional banking, is also expected to push hard to regain the Seoul treasury role. The bank is likely to argue it can create synergies because it holds 56% of district-level treasury accounts across Seoul’s 25 districts.
KB Kookmin is seen as a potential dark horse. In Seoul’s evaluation criteria, citizen convenience — including branches and automated teller machines — accounts for 18 points out of 100. By number of branches in Seoul, KB Kookmin leads with 291, ahead of Woori’s 265 and Shinhan’s 250. Shinhan, however, has the most ATMs, with 1,552, topping KB Kookmin’s 1,439. With the weighting for deposit interest rates increased this year, KB Kookmin is also expected to be able to offer the highest rates, backed by its capital strength.
Separately, a close contest is also expected in July for Incheon’s treasury mandate, which totals about 15 trillion won.
Shinhan manages Incheon’s primary treasury account and NH NongHyup Bank manages the secondary account. Hana Bank, which is moving its holding company headquarters to Cheongna, is also expected to enter the race. The bank has built a record of community initiatives, including support for foreign residents, backing for Inha University Hospital and Asan Cheongna Hospital, and care programs for vulnerable groups. By number of branches in Incheon, Shinhan leads with 49, followed by KB Kookmin with 45, NongHyup with 39, Woori with 35 and Hana with 31.
* This article has been translated by AI.
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