Shinhan Bank, Nonghyup Bank named Incheon city depositories

Incheon has selected the banks that will manage approximately 16 trillion won ($11.7 billion) in city funds over the next four years.

Shinhan Bank was chosen as the first depository and Nonghyup Bank as the second.

The city made the decision Thursday after the Incheon City Depository Designation Review Committee conducted a comprehensive evaluation of financial institutions' proposals and presentations.

Under the selection, Shinhan Bank and Nonghyup Bank will handle Incheon's depository operations for four years, from Jan. 1, 2027, through Dec. 31, 2030.

The first depository competition drew particular attention as a head-to-head contest between Shinhan Bank and Hana Bank.

Shinhan Bank, which has operated the first depository for 20 years, sought to defend its position, while Hana Bank mounted a challenge to claim the role.

Shinhan Bank ultimately prevailed.

The first depository manages Incheon's general accounts, public enterprise special accounts and funds. Based on the 2026 base budget, assets under management total 14.45 trillion won.

Nonghyup Bank will take charge of the second depository, which manages other special accounts amounting to 2.02 trillion won in city funds.

Nonghyup Bank had been the only applicant for the second depository from the outset, prompting the city to issue a re-announcement, but no additional financial institutions came forward.

Nonghyup Bank was formally selected following an evaluation by the review committee in accordance with relevant regulations.

The review was conducted through the Depository Designation Review Committee, which included outside experts. The 11-member panel comprised university professors, lawyers, certified public accountants, tax accountants and city council members.

The evaluation criteria went beyond the size of financial institutions or existing business relationships.

In accordance with Ministry of Interior and Safety guidelines and Incheon city ordinances on depositories, the committee assessed 20 detailed items across six categories: the creditworthiness and financial stability of each institution, loan and deposit interest rates offered to the city, convenience for residents, depository management capability, contributions to the local community and cooperation projects with the city, and other considerations.

The evaluation also covered the convenience of financial services that residents can directly experience, as well as each institution's IT systems and management capacity to carry out depository operations reliably.

Incheon plans to announce the selection results in the city gazette and on its official website and notify the chosen institutions. The city also plans to sign agreements with the next depositories in October.

"We selected the financial institutions for the next depository designation through an objective and fair process in accordance with relevant regulations," a city official said. "We will ensure that residents can pay taxes and other fees more conveniently, and that city funds are managed in a stable manner."