Shinhan and Hana Banks Compete for Incheon City Treasury

The competition between Shinhan Bank and Hana Bank for the Incheon City Treasury, valued at 15 trillion won, is reaching its climax. Shinhan, which has held the treasury for nearly 20 years, is leveraging its extensive operational experience to maintain its position. Meanwhile, Hana Bank is expected to strengthen its local ties following the relocation of Hana Financial Group's headquarters to Cheongna, aiming to reclaim the treasury.

According to Incheon City, Shinhan and Hana will conduct presentations and a Q&A session on September 17 to determine the new treasury holder. Each bank will have approximately 20 minutes for their presentations and questions. While Incheon City will not announce the results immediately, the final scores will be communicated to each bank after deliberation, making the winner apparent on the day.

As of the day before the presentations, it was still unclear who would represent each bank. Some in the financial sector speculate that Shinhan Bank CEO Jeong Sang-hyeok and Hana Bank CEO Lee Ho-sung may take the stage themselves, indicating the significance both banks place on this competition. However, a financial industry source noted, "Incheon City has limited the number of attendees for the treasury selection presentations, so it seems likely that the practical staff responsible for local institutional sales will lead the presentations and Q&A sessions."

The reason banks are investing effort in this treasury competition is the opportunity to secure substantial public funds reliably. Additionally, they can expand their business through financial transactions related to local government employee salary transfers and dealings with public institutions and affiliated agencies.

Shinhan Bank, which has managed the Incheon City Treasury since 2007, plans to emphasize its long-standing operational expertise and stability. Notably, during the administrative restructuring of Incheon City in July, which saw the establishment of four new district offices, Shinhan successfully transitioned its treasury services without service interruptions or payment errors by deploying IT specialists. A Shinhan Bank representative stated, "We will highlight our public finance capabilities and practical experience."

As the challenger, Hana Bank is expected to showcase its strengthened local connections due to the relocation of Hana Financial Group's headquarters. The evaluation criteria include contributions to the community and collaborative projects with the city, which may favor Hana following its move to Cheongna. Last month, Hana Bank also signed a financial agreement with Incheon City worth 350 billion won, which includes providing 150 billion won in guarantees for outstanding technology companies in AI, bio, cultural content, and energy sectors, as well as establishing a 200 billion won 'Incheon Unicorn Fund.'

However, questions have arisen regarding the appropriateness of Incheon City entering into a large-scale agreement with a specific financial group just before the treasury selection. In response, an Incheon City official clarified, "Community contributions will be evaluated based on actual donations or support provided to the Incheon area up to June of this year, not on future commitments," adding that the recent agreement is unrelated to the treasury evaluation.