Shinhan Bank extends Seoul city treasury win to district-level vaults

Shinhan Bank is expanding its foothold in the public finance market, successfully defending its Seoul city treasury contract and racking up wins in district-level treasury bids across the capital.

The bank was reselected in this year's Seoul city treasury tender and will manage the city's finances for four years starting next year. The contract covers the Seoul Metropolitan Government's annual budget of 60 trillion won ($45.3 billion).

Shinhan Bank took over the Seoul city treasury in 2018 from Woori Bank, which had held the contract for nearly a century. It has now defended the contract twice — first in 2022 and again this year — beating out rival banks each time.

The latest tender drew fierce competition from major commercial banks including KB Kookmin Bank, Woori Bank and Hana Bank. With the Seoul city treasury secured on top of its earlier retention of the Incheon city treasury, Shinhan Bank has cemented its standing in the municipal treasury management sector.

The bank has also been broadening its reach across other public-sector financial services, including court treasury operations and the Ministry of National Defense's Narasarang Card program. On top of winning the University of Seoul treasury contract, it has been posting results in the competition for district treasury accounts across Seoul.

In the district treasury selection process that began last month, Shinhan Bank added Jongno-gu and Gangseo-gu to the five districts it already managed — Gangnam-gu, Seocho-gu, Seongdong-gu, Eunpyeong-gu and Guro-gu.

Having secured the Seoul city treasury and added several district contracts, the bank is steadily expanding its influence across Seoul's public finance market.

The upcoming treasury selections for Gwangjin-gu and Dongjak-gu are drawing attention. It remains to be seen whether Shinhan Bank can add more contracts to its tally or whether rival banks will mount a comeback.