Yongwoo Lee, Deputy Governor of NH Nonghyup Bank, oversees key operations in agricultural and public finance, with a particular focus on managing local government treasuries. The bank's attention is directed toward the newly established Gwangju-Jeonnam Integrated Special City, which officially launched on July 1. NH Nonghyup Bank has been designated as the primary treasury management institution for the city, although this role will last only six months, ending in December. A bidding process for the next treasury management contract, which will oversee the city’s finances for the next four years, is set to take place in the second half of this year.
The treasury's scale is significant, with Gwangju's budget at 8.1 trillion won and Jeonnam's budget at 12.7 trillion won, totaling approximately 20.8 trillion won. Additionally, the government plans to provide annual financial support of 5 trillion won for the next four years to assist with the establishment of the integrated city, potentially raising the overall budget to around 25 trillion won.
The implications of managing a local government treasury extend beyond merely attracting deposits. It involves overseeing local taxes, non-tax revenues, and public project financing, thereby establishing a stable base for deposits and enhancing financial influence within the region.
In an interview with Aju Economy, Lee emphasized that a robust local network and IT infrastructure are essential for effectively managing municipal funds. He stated, "Nonghyup prioritizes the convenience of financial consumers and local residents in its branch operation strategy," adding that the extensive nationwide branch network is a competitive advantage that is difficult for other banks to replicate.
NH Nonghyup Bank plans to leverage its vast network of local branches and its role in underserved areas to maintain its treasury management position. While other banks would require significant time and resources to establish new IT systems and operational bases, Nonghyup already possesses the necessary infrastructure.
Lee expressed confidence, stating, "NH Nonghyup Bank holds a dominant position in the local government treasury management market due to its dense nationwide branch network and long-standing cooperative relationships with local governments." He also noted that vulnerable populations, such as the elderly and disabled in underserved areas, heavily rely on basic financial services provided by Nonghyup, which he believes positively influences the bank's selection as a treasury institution.
* This article has been translated by AI.
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