Key facts
- Financial institutions are opposing the government's plan to relocate public institutions from Seoul to provincial areas.
- The government, led by President Lee Jae Myung, is accelerating efforts to move institutions out of the capital.
- The Korea Financial Industry Union plans a rally and a general strike if the relocation proceeds.
- Unionized workers argue relocation would undermine their expertise and roles.
- The Financial Supervisory Service union believes remaining in Seoul is crucial for effective supervision.
Financial institutions in South Korea are strongly opposing the government's plan to relocate public institutions from Seoul to provincial areas, according to industry watchers.
The Ministry of Land, Infrastructure and Transport has begun soliciting opinions from public institutions slated for relocation, aiming to move as many as possible out of the capital. The Ministry of the Interior and Safety is also advancing plans to relocate government ministries and agencies. This push is fueled by President Lee Jae Myung's directive to leave no public institutions or agencies in Seoul.
Despite the significant opposition from affected institutions, the government has indicated it will not abandon the relocation initiative. An official from the land ministry stated that while institutions may not wish to relocate, the plan cannot be dropped solely due to their opposition, though valid explanations for remaining in Seoul could be considered.
In response to the developing plan, some financial institutions have started to organize. The Korea Financial Industry Union, representing financial workers, has announced plans for a rally and a potential general strike next month if the government proceeds. A recent vote showed 96.1 percent of union members supported the strike. The union argues the relocation is a political maneuver to weaken policy lenders by excluding financial workers.
Unionized workers from key policy-financing institutions, including the Korea Development Bank, Industrial Bank of Korea, and Export-Import Bank of Korea, have joined forces against the plan, asserting that relocation would compromise their specialized expertise and roles. The union of the Financial Supervisory Service also issued a statement emphasizing the need for the agency to remain in the capital for effective supervision. Additionally, the National Agricultural Cooperative Federation and other cooperatives have voiced their opposition.
Relocation of public institutions has been a long-standing government project in South Korea aimed at promoting balanced national development, given that nearly half the country's population resides in the Seoul metropolitan area. Previous efforts include the establishment of Sejong City and the relocation of major ministries there, as well as the recent move of the Ministry of Oceans and Fisheries to Busan.