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Gwangju-Jeonnam Unified City Passes Ordinance to Include Branch Distribution in Treasury Selection
Finance · Major Banks · yonhap_finance · 2026-09-10
The Gwangju-Jeonnam unified city council approved an ordinance to factor in regional branch distribution for treasury selection, effective immediately upon publication.
What Happened
Ordinance Approval: The Gwangju-Jeonnam Unified City Council has passed an amendment to include the distribution of financial branches across cities, counties, and districts in its treasury selection criteria. This move aims to address regional disparities rather than relying solely on the total number of branches.
Immediate Implementation: The amendment includes a provision for immediate enforcement upon publication. This means the new evaluation criteria could be applied to the selection of the treasury operator for the 2027–2030 period, which is scheduled to be announced this month.
Local Reaction: Observers suggest that the new criteria may favor NongHyup, which maintains an extensive branch network in rural areas. Meanwhile, Gwangju Bank has expressed opposition, arguing that changing evaluation standards just before the official announcement could undermine the fairness and predictability of the selection process.
Future Steps: The city plans to select the treasury operator for its 25 trillion KRW annual budget by October. Tensions remain as Gwangju Bank demands clarification on how branch networks of regional entities will be counted, setting the stage for a competitive selection process.