[DigitalToday reporter Ji-young Lee] Sh Suhyup Bank said on the 26th it will launch the "Sh Local Subsidy Dedicated Account."

The product was planned in line with revisions to local subsidy management standards that require the issuance, processing and settlement of local subsidies to be managed transparently through the local subsidy management system, Botam-e, from January 2026.

Suhyup Bank completed construction of a linkage system with Botam-e in December 2025. It said it has finished preparations to provide stable services as soon as the system takes effect.

The Sh Local Subsidy Dedicated Account consists of a "dedicated account for local governments" opened in the name of local governments and a "dedicated account for subsidy recipients" used by businesses confirmed to receive local subsidy support, depending on the user.

The dedicated account for local governments is designed to allow withdrawals only through Botam-e. It can fundamentally block use of subsidies for purposes other than intended and fraudulent spending. The dedicated account for subsidy recipients focuses on systematic management of subsidy funds and matching funds, and on improving settlement convenience.

In particular, the product operates on the premise that a standard agreement is signed between local governments and financial institutions. By institutionally controlling the overall subsidy execution process, it is designed to reduce administrative burdens for local governments and prevent audit and complaint risks.

It also plans to apply a dedicated account structure that is distinct from general corporate accounts in consideration of the public nature and stability of local subsidy management. It plans to operate reasonable interest rates and fee structures in line with agreements by local government.

A Sh Suhyup Bank official said the launch goes beyond introducing a simple financial product and is part of building financial infrastructure to raise transparency and trust in local subsidy execution. The official added the bank will continue to respond proactively to system changes and expand financial services that provide practical help to local governments and local communities.