The government is facing a surge of activity from local governments and labor unions ahead of its second public institution relocation plan. As municipalities compete to attract public agencies based in the capital region, unions are organizing protests and joint responses. This competition and opposition are intensifying even before the relocation targets and regions have been confirmed.
According to relevant departments on August 2, the government plans to announce the second public institution relocation plan by the end of this year and begin relocating leading institutions in 2027. With the government indicating it will outline the overall plan by September at the latest, there are expectations that a significant announcement could come before the Chuseok holiday.
The official timeline set by the government is to announce the plan within the year, but the specific institutions and their new locations have yet to be determined. The Ministry of Land, Infrastructure and Transport recently clarified that the expected destinations for each institution are not finalized, following the circulation of documents suggesting potential relocation sites.
Approximately half of all public institutions remain in the capital region. According to the National Assembly Budget Office's '2026 Public Institutions in South Korea' report, as of May this year, 162 out of 342 designated public institutions are headquartered in the capital region, with 128 in Seoul, 26 in Gyeonggi Province, and 8 in Incheon.
Financial institutions that remained in the capital during the first relocation are considered key candidates due to their size and significance. Attracting one of the three major policy banks—Korea Development Bank, IBK Industrial Bank, or Export-Import Bank—could have substantial ripple effects.
However, these banks are currently required by law to maintain their headquarters in Seoul, meaning legislative changes would be necessary for any actual relocation. Discussions about consolidating and adjusting the functions of policy financial institutions also present variables. If the government pursues organizational restructuring alongside relocation, it is likely that the functions and structures of institutions will be reorganized before determining relocation targets and regions.
The competition for industrial sector institutions is also fierce. The Korea Trade Insurance Corporation has been included in Daegu's target for attracting financial and small business support functions, while Busan has been advocating for its financial hub and export and marine finance capabilities.
Daegu and Gyeongnam are competing for the Korea Industrial Technology Promotion Agency (KIAT). Daegu emphasizes its connections with existing relocated institutions like the Korea Industrial Technology Planning and Evaluation Agency and the Korea Industrial Complex Corporation, as well as its focus on robotics and future mobility industries. Gyeongnam highlights its foundations in defense, nuclear power, aerospace, and machinery industries, positioning KIAT as one of its five key institutions to attract.
Among environmental agencies, the Korea Environmental Corporation, headquartered in Incheon, is a significant target. Chungcheongnam-do and Chungcheongbuk-do are competing to attract it, citing the creation of carbon neutrality and environmental industry clusters. Gyeongnam points to the environmental management needs of large industrial complexes, while Gwangju and Jeollanam-do highlight the potential for collaboration with the Naju Energy Valley. Conversely, voices opposing the relocation in Incheon cite local issues related to the metropolitan landfill and environmental industry research complex.
The competition surrounding the National Agricultural Cooperative Federation and the Korea Racing Authority continues as well. Although the National Agricultural Cooperative Federation is a cooperative and not a designated public institution under the Public Institutions Operation Act, it has been included in the lists of municipalities hoping to attract it. The Korea Racing Authority is actively seeking to relocate to Jeju, promoting connections between horse breeding, training, racing, and tourism.
In contrast to the local competition, there is significant internal opposition. Representatives from the Financial Workers' Union of the Korean Confederation of Trade Unions and the Service Workers' Union of the Korean Federation of Trade Unions recently met informally with officials from the Ministry of Land, Infrastructure and Transport, demanding transparency regarding the criteria and principles for selecting relocating institutions.
In particular, unions representing the Korea Development Bank, IBK Industrial Bank, and Export-Import Bank plan to hold a joint rally near the Korea Development Bank headquarters in Yeouido, Seoul, on September 11. Participation from other financial institution unions, including those from the National Agricultural Cooperative Federation, is also being discussed. They argue that dispersing policy financial institutions would reduce collaboration and efficiency in financial support, leading to inevitable loss of specialized personnel.
The National Agricultural Cooperative Federation is also mounting a large-scale protest. The NH Agricultural Cooperative Union held a rally in front of the Ministry of Land, Infrastructure and Transport in Sejong on July 23, followed by a large resolution meeting in Gwanghwamun, Seoul, on July 29. The union argues against the government's forced relocation, emphasizing that the National Agricultural Cooperative Federation is a voluntary cooperative, not a designated public institution.
Even before the government's plan is released, local governments are pinpointing potential destinations for institutions, while the labor sector is expressing opposition. If the relocation becomes a reality, there is a significant possibility of a 'mass resignation.' A survey conducted by the Public Transport Workers' Union among employees of 21 institutions revealed that 74.8% of respondents were negative about the public institution relocation policy, and 33.6% indicated they would consider resigning or changing jobs if relocation were decided.
According to relevant departments on August 2, the government plans to announce the second public institution relocation plan by the end of this year and begin relocating leading institutions in 2027. With the government indicating it will outline the overall plan by September at the latest, there are expectations that a significant announcement could come before the Chuseok holiday.
The official timeline set by the government is to announce the plan within the year, but the specific institutions and their new locations have yet to be determined. The Ministry of Land, Infrastructure and Transport recently clarified that the expected destinations for each institution are not finalized, following the circulation of documents suggesting potential relocation sites.
Approximately half of all public institutions remain in the capital region. According to the National Assembly Budget Office's '2026 Public Institutions in South Korea' report, as of May this year, 162 out of 342 designated public institutions are headquartered in the capital region, with 128 in Seoul, 26 in Gyeonggi Province, and 8 in Incheon.
Financial institutions that remained in the capital during the first relocation are considered key candidates due to their size and significance. Attracting one of the three major policy banks—Korea Development Bank, IBK Industrial Bank, or Export-Import Bank—could have substantial ripple effects.
However, these banks are currently required by law to maintain their headquarters in Seoul, meaning legislative changes would be necessary for any actual relocation. Discussions about consolidating and adjusting the functions of policy financial institutions also present variables. If the government pursues organizational restructuring alongside relocation, it is likely that the functions and structures of institutions will be reorganized before determining relocation targets and regions.
The competition for industrial sector institutions is also fierce. The Korea Trade Insurance Corporation has been included in Daegu's target for attracting financial and small business support functions, while Busan has been advocating for its financial hub and export and marine finance capabilities.
Daegu and Gyeongnam are competing for the Korea Industrial Technology Promotion Agency (KIAT). Daegu emphasizes its connections with existing relocated institutions like the Korea Industrial Technology Planning and Evaluation Agency and the Korea Industrial Complex Corporation, as well as its focus on robotics and future mobility industries. Gyeongnam highlights its foundations in defense, nuclear power, aerospace, and machinery industries, positioning KIAT as one of its five key institutions to attract.
Among environmental agencies, the Korea Environmental Corporation, headquartered in Incheon, is a significant target. Chungcheongnam-do and Chungcheongbuk-do are competing to attract it, citing the creation of carbon neutrality and environmental industry clusters. Gyeongnam points to the environmental management needs of large industrial complexes, while Gwangju and Jeollanam-do highlight the potential for collaboration with the Naju Energy Valley. Conversely, voices opposing the relocation in Incheon cite local issues related to the metropolitan landfill and environmental industry research complex.
The competition surrounding the National Agricultural Cooperative Federation and the Korea Racing Authority continues as well. Although the National Agricultural Cooperative Federation is a cooperative and not a designated public institution under the Public Institutions Operation Act, it has been included in the lists of municipalities hoping to attract it. The Korea Racing Authority is actively seeking to relocate to Jeju, promoting connections between horse breeding, training, racing, and tourism.
In contrast to the local competition, there is significant internal opposition. Representatives from the Financial Workers' Union of the Korean Confederation of Trade Unions and the Service Workers' Union of the Korean Federation of Trade Unions recently met informally with officials from the Ministry of Land, Infrastructure and Transport, demanding transparency regarding the criteria and principles for selecting relocating institutions.
In particular, unions representing the Korea Development Bank, IBK Industrial Bank, and Export-Import Bank plan to hold a joint rally near the Korea Development Bank headquarters in Yeouido, Seoul, on September 11. Participation from other financial institution unions, including those from the National Agricultural Cooperative Federation, is also being discussed. They argue that dispersing policy financial institutions would reduce collaboration and efficiency in financial support, leading to inevitable loss of specialized personnel.
The National Agricultural Cooperative Federation is also mounting a large-scale protest. The NH Agricultural Cooperative Union held a rally in front of the Ministry of Land, Infrastructure and Transport in Sejong on July 23, followed by a large resolution meeting in Gwanghwamun, Seoul, on July 29. The union argues against the government's forced relocation, emphasizing that the National Agricultural Cooperative Federation is a voluntary cooperative, not a designated public institution.
Even before the government's plan is released, local governments are pinpointing potential destinations for institutions, while the labor sector is expressing opposition. If the relocation becomes a reality, there is a significant possibility of a 'mass resignation.' A survey conducted by the Public Transport Workers' Union among employees of 21 institutions revealed that 74.8% of respondents were negative about the public institution relocation policy, and 33.6% indicated they would consider resigning or changing jobs if relocation were decided.
* This article has been translated by AI.
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