Shinhan Bank Secures Incheon’s KRW 14.45 Trillion Treasury Account
Shinhan Bank will manage Incheon Metropolitan City’s main public funds until 2030, extending its nearly two-decade hold after fending off rival Hana Bank for the significant contract.
Shinhan Extends Incheon Treasury Management
Shinhan Bank has secured the contract to manage Incheon Metropolitan City’s primary treasury account, a deal valued at 14.45 trillion won (US$10.9 billion) annually based on the city's 2026 budget. This four-year extension, awarded on Thursday, runs from 2027 to 2030.
Shinhan Bank has overseen Incheon’s main public funds since 2007, successfully defending its position against strong competition from Hana Bank. The No. 1 treasury handles Incheon's general account, along with public enterprise special accounts and various funds.
Building on Seoul Treasury Success
This win reinforces Shinhan Bank’s dominant role in managing South Korea’s municipal finances. It follows the bank's successful retention of the Seoul city treasury earlier this year in May. Shinhan secured management of both Seoul’s No. 1 and No. 2 treasuries through 2030, extending its control over the public finances of two of the country's largest metropolitan governments.
Meanwhile, NH NongHyup Bank was selected for Incheon’s No. 2 treasury, which manages other special accounts worth approximately 2.02 trillion won.
Intense Competition for Public Funds
The competition for the Incheon treasury was particularly fierce, with Hana Bank actively seeking to expand its presence in the city. Hana Financial Group recently relocated its headquarters to Cheongna, intensifying its bid for the account. Both Shinhan CEO Jung Sang-hyuk and Hana CEO Lee Ho-sung personally attended the final evaluation, with Mr Lee presenting Hana's proposal.
Despite the high-profile contest, industry reports suggest that municipal treasury contracts often yield thin direct returns for banks.
Strategic Value Beyond Profit
Banks pursue these accounts for strategic benefits beyond immediate profits. Municipal funds provide a stable deposit base and create opportunities for business with affiliated public institutions, regional companies, and public employees. Managing a major city’s finances also strengthens a bank’s credentials when competing for other public-sector mandates.
Under its current 2023–26 contract, Shinhan committed 110.7 billion won in cooperation funds to Incheon, highlighting the broader value proposition of such agreements.
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