[Exclusive] Seoul City Treasury Bidding Closes at 51 Trillion Won... Shinhan vs. Woori Head-to-Head for Primary Treasury

KB Kookmin Bank and Hana Bank Submit Proposals Only for Secondary Treasury

Shinhan Bank and Woori Bank are set to compete for the coveted treasury manager role responsible for overseeing the Seoul Metropolitan Government's annual budget of 51 trillion won. KB Kookmin Bank and Hana Bank will only participate in the bidding for the secondary treasury account.

According to the financial industry on May 6, four banks—Shinhan Bank, Woori Bank, KB Kookmin Bank, and Hana Bank—submitted their proposals for the Seoul City Treasury bid, which closed at 6 p.m. that day.

Shinhan Bank, which is the current manager of both the primary and secondary treasury accounts, and Woori Bank, which aims to reclaim the role, both submitted proposals for both accounts. KB Kookmin Bank, which had participated in both treasury account bids since the dual-treasury system was introduced in 2018, submitted a proposal only for the secondary account this time. Hana Bank also applied solely for the secondary treasury. NH Nonghyup Bank and SC First Bank, which had previously attended the briefing session, did not participate in the bidding.

The primary treasury manages the general and special accounting budgets for Seoul, while the secondary treasury is responsible for various funds. Of this year’s total budget of 51.4778 trillion won, about 47 trillion won is allocated to the primary treasury account. In effect, the bank selected for the primary treasury will hold the Seoul City Treasury title.

Shinhan Bank and Woori Bank, competing for the primary treasury, also vied for this role in 2018 and 2022. Historically, Woori Bank had been the treasury manager since the era of Gyeongseongbu Treasury in 1915, but Shinhan Bank broke this 103-year monopoly by winning the operating rights in 2018. Shinhan Bank retained its position as the primary treasury manager in 2022, continuing its operations for eight years.

For the secondary treasury, the competition expands to a four-way race with KB Kookmin Bank and Hana Bank joining in. Woori Bank had long managed the secondary treasury as well, but in 2022, Shinhan Bank took over the role.

Both Shinhan Bank and Woori Bank are strongly motivated to defend or reclaim the primary and secondary treasury accounts, suggesting a fierce competition ahead. However, the industry is also paying close attention to the outcome for the secondary treasury, as KB Kookmin Bank, initially considered a likely contender for the primary treasury, has chosen to focus its efforts solely on the secondary account. While KB Kookmin Bank achieved record performance last year and boasts robust financial strength, its lack of experience managing the primary treasury has been noted as a weakness.

The bank awarded the treasury management rights will oversee general revenue and expenditure or fund management. Additional business opportunities, such as managing supplementary projects and public servant payroll, are also expected. Beyond expanding deposits, managing the treasury of the country’s largest local government brings significant symbolism and credibility. However, there are concerns that the deciding factors will ultimately be interest rates and contribution funds, and that, given Seoul’s stringent requirements, even the winning bank will inevitably face considerable expenses.

Seoul City plans to select the treasury bank in mid-May through the Treasury Designation Review Committee, composed of industry experts and city council members. The presentation is scheduled for May 12. The bank with the highest score in the category-by-category evaluation will become the preferred negotiation partner for the next term’s city treasury.

This content was produced with the assistance of AI translation services.