[Edaily Reporter Jeong Min-ju ] As forecasts suggest that a large number of financial institutions will be included in the second phase of the public sector relocation to regional areas, attention is turning to the regions that will attract these financial institutions. While the Financial Services Commission (FSC), a government ministry, is expected to relocate to Sejong City, the three state-run banks are anticipated to move to regions such as Busan, which are envisioning themselves as financial hubs.

According to the financial sector on the 18th, the government will announce plans for the relocation of central government ministries and the second phase of public institution relocations to regional areas as early as the 25th of this month. It is reported that the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) are included in the relocation list. The relocation will proceed once the Minister of the Interior and Safety establishes a plan for the institutions’ move to Sejong City and the President approves it. In the case of the FSS, a legislative amendment is also required. The current Act on the Establishment of the Financial Services Commission stipulates that the FSS’s main office must be located in Seoul.

Both the FSC and the FSS are being discussed for relocation to Sejong City. Since the FSC’s move to Sejong has been consistently raised, there is a growing sense within the agency that it is a foregone conclusion. Above all, the government’s commitment to relocating agencies to regional areas is strong, and since a proposal to absorb the FSC into the Ministry of Finance and Economy was scrapped last year, the prevailing view is that the agencies will have no choice but to comply this time. Similarly, it is interpreted that the FSS must accept the relocation to a regional area, given that the government accepted its opposition last year to a reorganization plan that would have spun off the Financial Consumer Protection Bureau into a separate entity.

The relocation of state-owned banks—including the Korea Development Bank (KDB), the Industrial Bank of Korea (IBK), and the Export-Import Bank of Korea (KEXIM)—is also anticipated. Competition among local governments to attract these state-owned banks is already fierce. Previously, 10 cities and provinces nationwide submitted their preferred institutions to the government; among them, Busan expressed interest in attracting all three policy banks. The competition for the Korea Development Bank (KDB), which operates more like a commercial bank, is even more intense. Busan, along with Daegu, South Gyeongsang Province, and North Jeolla Province, have entered the race. Naju is also increasing its chances. As for the Korea Export-Import Bank (KEXIM), a relocation to Busan is being discussed.

An official from a local government stated, “Considering the relocation of policy bank employees, we are looking into available sites or vacant spaces near subway stations,” adding, “It appears that working-level discussions will begin in earnest following the government’s announcement on the 25th.” The official continued, “Since the President has highlighted ‘selection and concentration’ as key principles for the second phase of public institution relocations, the government may also be considering a plan to concentrate institutions in a single region rather than dispersing them.”

In addition, it is anticipated that the Korea Deposit Insurance Corporation, the Korea Inclusive Finance Agency, and the Credit Recovery Committee may also be included in the list of institutions targeted for relocation to the provinces.

With the government’s announcement imminent, the Financial Workers’ Union is intensifying its opposition to the relocation. Gathering in front of the fountain at the Blue House’s Sarangchae that afternoon, they argued, “What is needed for balanced regional development is to strengthen local financial infrastructure and improve financial accessibility for local residents,” and criticized the plan, saying, “This is not a token policy of simply moving the headquarters of financial institutions.”

Starting today, the Financial Supervisory Service (FSS) is collecting “signatures opposing the relocation” from all its employees. Furthermore, in a statement released the previous day, the union condemned the move, calling it “a grave mistake to push even the supervisory body—which should be overseeing finance on the front lines—into the background.”

The Financial Workers’ Union plans to hold a general strike on the 4th of next month and will make every effort to block attempts to relocate financial institutions to the provinces. A union official emphasized, “In the past, relocation to the provinces was a low priority, but it has now rapidly emerged as the most important issue,” adding, “This shows just how directly the relocation of financial institutions to the provinces is linked to the survival of employees.”