Second Phase of Public Institution Relocation Delayed Until October

by Hong Seung Woo Posted : August 25, 2026, 15:20Updated : August 25, 2026, 15:20

The timeline for the second phase of public institution relocations is expected to be delayed beyond initial projections. While it was anticipated that details would emerge in September, the government is now considering finalizing plans around October to November after gathering input from local governments and labor unions through a public consultation process.


On August 25, Kim Yoon-deok, the Minister of Land, Infrastructure and Transport, stated during a National Assembly budget committee meeting that the government is currently in the preparatory phase and must undergo a public discourse process, estimating that decisions will be made around October to November.


Approximately 350 institutions are being considered for relocation in this second phase. However, it may not be feasible for all targeted institutions to move at once. The Ministry of Land is reportedly reviewing potential institutions and regions while coordinating the selection criteria, methods, and timelines.


Minister Kim noted, “Since the local government representatives have changed following the recent local elections, we are gathering opinions primarily from the newly elected officials. We also need to consider labor union perspectives, and we plan to conclude this process through public hearings and inquiries.”


The principles for relocation include innovation cities and concentration. Kim stated, “Discussions regarding the second phase of public institution relocations are being prepared with a focus on innovation cities and principles of concentration and aggregation.”


Although there were expectations that the second phase of public institution relocations would be on the agenda for the Cabinet meeting on this day, it ultimately was not included. The Ministry of Land is collecting opinions on the targeted institutions under the principle of minimizing the number of institutions remaining in Seoul.


During a press briefing marking his first anniversary in office on August 14, Minister Kim also confirmed that the directive from President Lee Jae-myung is to achieve a “zero presence in Seoul” for public institutions, formalizing the push for relocation.


However, challenges are anticipated in the implementation process. Institutions such as the Financial Supervisory Service, the Korea Deposit Insurance Corporation, the Personal Information Protection Commission, and the Ministry of Gender Equality and Family are among those mentioned for relocation, but some labor unions are opposing the moves, indicating a need for social dialogue and coordination.


While the Ministry of Land is responsible for public institution relocations, the Ministry of the Interior and Safety is separately managing the relocation of central administrative agencies. If discussions on public institution relocations and central administrative agency relocations occur simultaneously, issues related to regional placement, functional connections, and the specific duties of each agency may arise.


The second phase of public institution relocations is a significant matter for regional balanced development, and there is a possibility of increased competition among regions for hosting institutions, as well as internal resistance within the agencies during the selection process.


The government plans to finalize the second phase of public institution relocation plans after conducting public hearings and inquiries, incorporating feedback from local governments, institutions, and labor unions.





* This article has been translated by AI.