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Gwangju Bank Faces Challenges as New Ordinance Alters Municipal Treasury Selection Criteria
Finance · Major Banks · yonhap_finance · 2026-09-10
A new ordinance requiring municipal treasury evaluations to consider regional branch distribution threatens Gwangju Bank's competitiveness against NH Bank.
What Happened
Ordinance Amendment: A legislative amendment regarding the selection of the Gwangju-Jeonnam integrated city treasury has passed the committee stage, shifting the focus toward regional branch distribution. The new criteria will evaluate the density of financial service points across all districts and counties, rather than just total branch counts.
Impact on Banks: Gwangju Bank is concerned that the new rules favor NH Bank, which maintains a more extensive branch network across the 22 cities and counties of the region. Gwangju Bank currently lacks physical presence in several areas where NH Bank is well-established, potentially putting it at a disadvantage.
Competitive Landscape: Gwangju Bank has voiced opposition to the amendment, citing concerns over fairness and predictability in the selection process. With the selection for the 2027-2030 treasury term approaching, the inclusion of local agricultural cooperative branches in the evaluation remains a critical point of contention.
Future Outlook: Given the massive budget of the integrated city, which is expected to reach 25 trillion won, securing the treasury contract is vital for the competing banks. Gwangju Bank intends to focus on other qualitative and quantitative metrics to remain competitive in the upcoming bidding process.