Yeongjong-gu Expands Banks Offering Dedicated Local Subsidy Accounts From One to Three

Starting Jan. 1, 2027, organizations and businesses that receive local subsidies from Yeongjong-gu District (Mayor Son Hwa-jeong) in Incheon will be able to open their dedicated accounts at any of three local financial institutions. Currently, such accounts can only be opened at the district’s single designated treasury bank. On the 20th, the district signed an agreement on dedicated accounts and cards for the local subsidy integrated management system with Yeongjong MG Community Credit Cooperative and Yeongjong Credit Union (Yeongjong Shinhyup) in the mayor’s office at Yeongjong-gu Office.

[The Korean Today] Signing ceremony for Yeongjong-gu’s agreement on dedicated accounts and cards for the local subsidy integrated management system © Reporter Kim Mi-hee

Dedicated accounts and cards are the payment methods that subsidy recipients must use throughout the entire process of receiving and spending subsidies from local governments. Because the accounts and cards are linked to Botame, the local subsidy integrated management system, all transaction records are automatically logged in the system. In effect, they serve as a monitoring mechanism to prevent subsidies from being used for purposes other than those intended.

Until now, the only place in Yeongjong-gu where these dedicated accounts could be opened was Shinhan Bank, the district’s treasury bank. Even resident groups and businesses that normally bank with MG Community Credit Cooperative or a credit union had to open an additional account at Shinhan Bank to receive subsidies. This led to complaints that splitting their business between two financial institutions made fund management cumbersome.

The agreement follows a revision by the Ministry of the Interior and Safety to its Local Subsidy Management Standards that allows dedicated accounts to be opened at financial institutions other than a district’s treasury bank. Applying the revised standards, Yeongjong-gu has newly added two locally based financial institutions to its subsidy management system.

From Jan. 1, 2027, subsidy recipients can choose to open a dedicated account at Shinhan Bank, Yeongjong MG Community Credit Cooperative or Yeongjong Credit Union. For dedicated cards, Shinhyup Card will be added to the currently used Shinhan Card and NH Nonghyup Card, bringing the total to three.

[The Korean Today] Commemorative photo of the agreement signing among Yeongjong-gu, Yeongjong MG Community Credit Cooperative and Yeongjong Credit Union © Reporter Kim Mi-hee

The district also set criteria to ensure that expanding the options does not weaken oversight. In selecting partner institutions, it considered only financial institutions rated “satisfactory” or higher in management condition evaluations. The aim is to improve convenience for users while ensuring that subsidies, as public funds, are managed safely and transparently by institutions with verified financial soundness.

The agreement will be in effect for one year, from Jan. 1 to Dec. 31, 2027. It will then be renewed automatically every year, allowing the system to continue operating without a new agreement being signed annually.

“Through this agreement, subsidy recipients can now conveniently manage their subsidies at the local financial institutions they usually deal with,” Yeongjong-gu District Mayor Son Hwa-jeong said. “We will continue working to improve the system so that subsidies are executed transparently and efficiently.”

The measure eases the administrative burden on subsidy recipients such as resident groups by allowing them to manage subsidies at their primary financial institution. It is also significant in that local financial institutions will now take a direct part in managing public subsidies. However, its effectiveness is expected to depend on how many subsidy recipients actually use the new institutions after the system takes effect in 2027.

[ Reporter Kim Mi-hee: incheonsouth@thekoreantoday.com ]

Become a Local Ambassador Apply as Branch Director The Korean Today — Nam-Incheon