As the government prepares to announce its roadmap for the second phase of public institution regional relocation, opposition from the financial sector is intensifying. Unions from the Industrial Bank, Korea Development Bank, and Export-Import Bank are jointly mobilizing for the first time to resist the relocation of financial public institutions.
On August 11, the unions held a rally titled 'Determined Struggle Against the Relocation of National Policy Banks' near the Industrial Bank headquarters in Yeouido, Seoul. Approximately 2,000 employees from the three national policy banks are expected to voice their opposition to the relocation. About 150 officials from the NH Nonghyup union also joined the rally.
The unions argue that relocating national policy banks would not only involve moving headquarters but could also undermine their ability to perform policy financing and diminish the competitiveness of the financial industry. They emphasize the importance of physical and operational accessibility to financial hubs due to the nature of their work, which requires close collaboration with financial authorities, private financial institutions, and businesses.
The Deposit Insurance Corporation union also held a policy discussion on the relocation earlier that day, asserting the need to maintain its headquarters in Seoul.
Ko Dong-won, head of the Financial Legislation Research Center at Law Firm Lin, stated, "The decision on the location of the Deposit Insurance Corporation should prioritize the efficiency of the financial safety net over mere relocation costs or regional balanced development logic. Ensuring access to financial hubs is essential for the corporation to fulfill its core functions." Participants in the discussion echoed that having the Deposit Insurance Corporation located in Seoul, where major financial institutions and markets are concentrated, would facilitate its financial stability functions.
The government is expected to unveil the second phase of its public institution regional relocation roadmap in September. Under the policy of minimizing the presence in the capital region, the Deposit Insurance Corporation and other major financial public institutions are being considered for relocation.
However, the criteria for selecting institutions for relocation have yet to be specified. On July 28, unions from the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions met informally with officials from the Ministry of Land, Infrastructure and Transport, demanding clarity on the selection criteria and principles for relocation. Reports indicate that the ministry has not provided a concrete response.
As the government's roadmap announcement approaches, the financial sector anticipates that opposition from unions and financial public institutions regarding regional relocation will intensify.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.