By Jhoo Dong-chan
The nation's major banks are racing for a safe system deal to keep Seoul Metropolitan Government's budgets worth 32 trillion won annually.
According to financial circles, Tuesday, the city will hold a briefing on its newly implemented dual depository system on March 30, and then receive applications from banks on April 25 for five days.
Woori Bank has been the depository for the city's budgets for 103 years, even during the 1910-45 Japanese occupation, but the city said the depository contract with the bank is scheduled to expire by the end of this year and has recently decided it will designate two banks in which it will deposit its money.
The city said it will not only consider each bank's financial stability but also convenience and joint business with the city. The city will announce its depository partners in May, and the selected banks will keep the city's budget until December 2022.
Woori Bank has reportedly enjoyed enormous profits for more than a century in managing the city's budgets, which are worth 32 trillion won this year, and major banks have been calling on the city government to implement a dual depository system.
"Woori Bank has been the city's depository for more than 100 years," an industry insider said. "It will be difficult for the city to ditch its century-long partner. The bank will win the Safe 1, which is for the city's general and special budget account. Other banks are expected to compete for the remaining one for the city's various funds."
Woori Bank said it will appeal with its century-long knowhow in its bid.
"The bank's vault system is the nation's top level where 1,600 workers specialized in safe management operate it," a Woori Bank official said.
"Woori Bank also has the largest optical character recognition center while operating 408 branches and 1,065 cash corners in Seoul."
Shinhan Bank, which offers its depository service to 20 of the nation's local governments, said it will promote its diverse experience with many local governments.
"We have operated about 10 depositories for more than 10 years with a number of local governments in Korea. Money management and computerized system are already in place," a Shinhan Bank official said.
Observers say KB is likely to join the race, but Industrial Bank of Korea and KEB Hana Bank have yet to decide on joining it.
The nation's major banks are racing for a safe system deal to keep Seoul Metropolitan Government's budgets worth 32 trillion won annually.
According to financial circles, Tuesday, the city will hold a briefing on its newly implemented dual depository system on March 30, and then receive applications from banks on April 25 for five days.
Woori Bank has been the depository for the city's budgets for 103 years, even during the 1910-45 Japanese occupation, but the city said the depository contract with the bank is scheduled to expire by the end of this year and has recently decided it will designate two banks in which it will deposit its money.
The city said it will not only consider each bank's financial stability but also convenience and joint business with the city. The city will announce its depository partners in May, and the selected banks will keep the city's budget until December 2022.
Woori Bank has reportedly enjoyed enormous profits for more than a century in managing the city's budgets, which are worth 32 trillion won this year, and major banks have been calling on the city government to implement a dual depository system.
"Woori Bank has been the city's depository for more than 100 years," an industry insider said. "It will be difficult for the city to ditch its century-long partner. The bank will win the Safe 1, which is for the city's general and special budget account. Other banks are expected to compete for the remaining one for the city's various funds."
Woori Bank said it will appeal with its century-long knowhow in its bid.
"The bank's vault system is the nation's top level where 1,600 workers specialized in safe management operate it," a Woori Bank official said.
"Woori Bank also has the largest optical character recognition center while operating 408 branches and 1,065 cash corners in Seoul."
Shinhan Bank, which offers its depository service to 20 of the nation's local governments, said it will promote its diverse experience with many local governments.
"We have operated about 10 depositories for more than 10 years with a number of local governments in Korea. Money management and computerized system are already in place," a Shinhan Bank official said.
Observers say KB is likely to join the race, but Industrial Bank of Korea and KEB Hana Bank have yet to decide on joining it.
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