'Ordinance Passed for 25 Trillion Won Jeonnam Gwangju Special City Treasury... Controversy Over Changes to Evaluation Criteria'

Reflecting Distribution of Bank Branches and ATMs by City, District, and County

Debate Over "Changing the Rules" Just Before Treasury Selection

City Council Approves Ordinance with 53 in Favor, 17 Opposed

The evaluation criteria for selecting the institution to operate the treasury, which will manage approximately 25 trillion won annually for the Jeonnam Gwangju Integrated Special City, are set to change. The new criteria will factor in how evenly the financial institution’s branches and Automated Teller Machines (ATMs) are distributed across the newly integrated city. While there have been objections that the standards are being altered on the eve of the selection process, the ordinance bill has been passed by the city council.

According to the Jeonnam Gwangju Integrated Special City Council on September 12, the 'Partial Amendment to the Ordinance on Designation and Operation of the Treasury of Jeonnam Gwangju Integrated Special City' was approved at the second plenary session of the 1st Regular Session held the previous day. Out of the 81 members present, 53 voted in favor, 17 opposed, and 11 abstained.

The first regular session of the Jeonnam Gwangju Integrated Special City Council. Courtesy of Jeonnam Gwangju Special City Council

The amendment, sponsored by Assemblyman Park Jinhans from the Democratic Party (Proportional Representation), stipulates that when evaluating criteria for treasury designation—including the number of bank branches, unmanned branches, and ATM installations—the regional distribution by city, district, and county must also be compared.

Since the jurisdiction of the treasury has expanded to 27 cities, districts, and counties with the launch of the integrated special city, the intent is to assess not just the total number of branches, but also the accessibility of financial services in each region.

The main issues at stake were the timing of implementation and fairness of the assessment. The special city plans to select the financial institution that will operate the treasury for the next four years by October. Critics argued that changing the criteria just before the announcement this month could give NH NongHyup Bank, with its wider branch network, an advantage, while disadvantaging Kwangju Bank.

Assemblywoman Noh Soyoung (Democratic Party, Nam District 1) said during the opposition debate, "What citizen would consider it fair if the rules of a game are changed to favor a particular player right before the match begins?"

Assemblywoman Noh claimed that the amendment could block fair opportunities for local banks and other financial institutions. She argued that the outflow of regional funds could undermine loans for small business owners, youth talent development, and investment in future new industries, calling either for the withdrawal of the ordinance or its implementation to be postponed by four years.

Assemblyman Park Munok (Democratic Party, Mokpo District 3) supported the amendment, citing the concentration of financial institution branches in specific areas even within the integrated city.

Assemblyman Park stated, "We carefully examined ordinances in other regions as well," adding, "True integration means financial institutions are distributed evenly and fairly across all regions." He explained that by considering not only the overall size of branch networks but also their regional distribution, disparities in access to financial services can be reduced.

Concerns were also raised about whether there had been sufficient review of the ordinance. The City Council’s Administrative and Firefighting Committee passed the amendment as originally proposed on September 10, without member questions or any formal debate for or against. Critics argued that, given the significant financial interests at stake, the standing committee should have conducted a more thorough review.

The Jeonnam Gwangju Integrated Special City plans to publicly announce the treasury designation later this month and finalize the selection of the operating institution by October. The selected financial institution will manage the special city’s treasury for four years starting from 2027. Currently, NH NongHyup Bank and Kwangju Bank are considered the leading candidates.

This content was produced with the assistance of AI translation services.