As discussions intensify regarding the second phase of relocating public institutions, financial unions have initiated collective actions. Concerns are growing within the financial sector about weakened organizational competitiveness and talent loss.
On July 23, the NH Nonghyup Financial Group branch of the National Financial Industry Labor Union, along with about 200 union members, held a "Stop the Relocation Rally" in front of the Sejong Government Complex.
Speculation has arisen that the government plans to push forward with the second phase of relocating public institutions, prompting financial labor unions to take decisive action. President Lee Jae-myung, during a meeting marking his first anniversary in office, stated, "The first phase of public institution relocations resulted in a loss of concentration due to dispersion," emphasizing the need for further relocations. Financial authorities are expected to release guidelines for the relocation of public institutions as early as August or September.
As part of this initiative, discussions are underway about relocating the National Agricultural Cooperative Federation to Naju and other subsidiaries, including NH Bank, to Busan.
The union maintains that NH was established as a cooperative funded by farmers, asserting that the government cannot unilaterally decide on its relocation. They argue that the relocation costs, which could reach billions of won, would ultimately deplete resources meant to support farmers. They also noted that approximately 73% of the 70,000 employees across the NH group already work outside the capital region, warning that dispersing subsidiaries would diminish synergies.
The NH branch plans to escalate its protests. On July 29, a large-scale rally is scheduled to take place in Gwanghwamun, with over 2,000 members from the central headquarters and IT sector participating to continue their fight against the relocation.
Following NH's lead, other financial institutions are expected to join the protests, especially as there are indications that related agencies under the Financial Services Commission may also relocate to Sejong. Critics within the financial sector warn of significant adverse effects, including decreased morale and talent loss. For instance, the Industrial Bank of Korea typically sees an annual turnover of 30 to 40 employees, but this number surged to nearly 100 in 2022 and 2023 after rumors of a move to Busan became official.
The financial union has completed the formation of a "Joint Task Force" with 14 branches, including the Industrial Bank of Korea, IBK Industrial Bank, Korea Export-Import Bank, Fisheries Cooperative, Credit Union, Forest Cooperative, and Saemaul Geumgo, and is continuing discussions with the government. Following the rally on July 23, they are considering a large-scale gathering in August that will involve all branches. Individual unions from financial public institutions, such as the Deposit Insurance Corporation, are also preparing for collective actions.
A financial sector representative stated, "There may be an increase in turnover among employees who prefer to work in the capital region, and the competitiveness of new hires could weaken. It is essential to conduct thorough studies to determine whether there are actual effects of balanced regional development."
* This article has been translated by AI.
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