Public Institutions' Relocation Sparks Strong Opposition from NH Bank and Horse Racing Association

By AJP Posted : August 18, 2026, 18:04 Updated : August 18, 2026, 18:04
The government's discussions on the second phase of public institution relocations have prompted strong backlash from the institutions being considered for relocation. The conflict surrounding these relocations is expanding beyond the targeted institutions to the communities where they are currently located.

Experts warn that without specific relocation plans that consider the functions and characteristics of each institution, significant turmoil is likely during the policy implementation process.

According to industry sources on August 18, the National Agricultural Cooperative Federation (NH Bank) labor union has recently escalated its protests against the government's regional relocation initiatives. The union began a public campaign to raise awareness about the potential economic losses and operational gaps resulting from the central federation's relocation, starting with a meeting on August 13 with external guests and local merchant associations in the Seodaemun area.

The union is also ramping up its external protests. On August 21, around 200 members plan to participate in a large street march and hold a brief rally near the Blue House. Following that, on August 28, they will join forces with the National Financial Industry Labor Union to hold a rally condemning the government's unilateral relocation efforts.

In contrast to NH Bank's heightened external protests, the Bank of Korea, which is also facing potential relocation to Sejong, is maintaining a policy of non-response.

The Bank of Korea union stated, "The Bank has large vaults and financial infrastructure. It is impossible to relocate without a long-term and clear plan in place. If this happens, it would infringe upon the independence of the central bank, making it not worth responding to."

Some institutions are seeing their internal opposition extend to the communities where they are currently based. The Korea Racing Authority (KRA) is a prime example. As discussions about its potential relocation coincide with the government's 'August 13 Housing Supply Plan,' the KRA is increasing its response efforts.

The government announced plans to expedite the relocation of existing facilities at key sites, including the Gwacheon racetrack and the anti-espionage center, as part of the 'August 13 Housing Supply Plan,' aiming for construction to begin in 2029. The KRA union is protesting the lack of specific plans regarding the relocation sites and alternative facilities, especially since the housing supply timeline has already been presented.

The KRA union criticized the government for unilaterally proposing an unrealistic timeline that includes selecting relocation sites in September, relocating some racing areas in 2028, and starting construction in 2029. They argued that beginning apartment construction next to some racing areas is a reckless idea that jeopardizes the welfare of racehorses, which are sensitive to noise and dust.

The KRA asserts that relocating the Let’s Run Park is not the same as moving a typical public institution. It involves not just securing alternative sites and relocating staff but also moving thousands of horses and related facilities, while considering accessibility for spectators and the safety of racehorses from noise and vibrations. This necessitates a long preparation and verification period from site selection to actual relocation.

The KRA union plans to ally with the Gwacheon City Civil-Private-Government Emergency Response Committee, which is opposing the government's large-scale housing supply plan. The committee plans to hold a rally in front of the National Assembly on August 28 and march to the Democratic Party headquarters.

While each institution has different reasons for their opposition and response strategies, there is a growing call for the government to present a concrete relocation blueprint. Concerns are rising that pushing for relocations without social consensus and consideration of each institution's functions could lead to significant workforce exodus or long-distance commuting from the metropolitan area, undermining the policy's effectiveness.

Lee Hyang-soo, president of the Korean Association for Local Government Studies and a professor at Konkuk University, expressed concern, stating, "The fundamental issue is that the infrastructure in the regions was severely lacking during the first phase of public institution relocations. It is difficult to view the unions and local communities' opposition to relocation as selfish. If the government does not present a clear vision for improving living conditions, families will continue to stay in large cities."




* This article has been translated by AI.

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