[Edaily Reporter Jeong Min-ju ] As forecasts suggest that a large number of financial institutions will be included in the second phase of the relocation of public institutions to regional areas, attention is also focusing on the regions vying to attract these institutions. While the Financial Services Commission (FSC), a government ministry, is all but certain to relocate to Sejong City, the three state-run banks are expected to move to regions such as Busan that 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 formulates a plan for the agencies’ move to Sejong City and the President approves it. In the case of the FSS, legislative amendments are 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 regional relocation is strong, and given that a proposal to absorb the FSC into the Ministry of Finance and Economy last year was ultimately scrapped, the prevailing view is that the agencies will have no choice but to comply this time. Similarly, since the government accepted the FSS’s opposition to a reorganization plan last year that would have spun off its Financial Consumer Protection Bureau into a separate entity, it is interpreted that the FSS must now accept the relocation.

The relocation of policy banks—the Korea Development Bank, the Korea Enterprise Bank, and the Export-Import Bank of Korea—is also anticipated. Competition among local governments to attract these policy 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 is even fiercer for the Korea Development Bank (KDB), which operates more like a commercial bank. 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 employees from these policy banks, we are looking into available land 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 emphasized ‘selection and concentration’ as key principles for the second phase of public institution relocations, the government may also be considering a plan to concentrate these 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 slated for relocation to the provinces.

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

Starting today, the Financial Supervisory Service (FSS) is collecting “signatures opposing the relocation to regional areas” from all its employees. Furthermore, in a statement released the previous day, the union condemned the move, calling it “a grave blunder to push even the supervisory body—which should be on the front lines of financial oversight—to the back lines.”

The Financial Workers’ Union plans to hold a general strike on the 4th of next month as well, devoting all its efforts to blocking 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.”