The Scale of Regional Relocation Financial Public Enterprises Expands... "Korea Investment Corporation Also Under Review"

Review of Local Relocation by the Presidential Transition Committee's Regional Balanced Development Special Committee
Small Scale but Considering Fairness with Other Financial Public Enterprises

The next government has confirmed that the relocation of Korea Investment Corporation to the provinces is also under consideration. With the relocation of the Korea Development Bank to Busan taking shape, there is a growing expectation that a rush of national financial institutions remaining in Seoul will move to provincial areas.

A senior official from the Presidential Transition Committee's Special Committee on Regional Balanced Development said in a phone call on the 22nd, "Not only the Korea Development Bank but also the Export-Import Bank, Industrial Bank, and Korea Investment Corporation will be included in the relocation review." Since President-elect Yoon Seok-yeol stated during his Busan campaign that "in addition to the Korea Development Bank, large banks and foreign banks will also be able to establish themselves in Busan," discussions on relocation are expected to gain momentum as part of fulfilling campaign promises.

Korea Investment Corporation is relatively small compared to other national financial institutions, with a total staff of only about 200. It does not meet the standard set by the Special Committee on Regional Balanced Development, which emphasizes providing quality jobs in the regions as a purpose for relocating national banks. However, it appears that considerations were made regarding fairness issues if other national banks relocate to the provinces. For the Investment Corporation, which mainly handles overseas operations, there is little justification for maintaining a base in Seoul.

The relocation of national banks to provincial areas is expected to be actively discussed during the transition committee's operation period. Although it is not yet at the stage of specifying the relocation sites, there is a possibility of co-locating other financial public enterprises, including the Investment Corporation, at the Busan International Financial Center, which is being mentioned as the relocation site for the Korea Development Bank. The Special Committee on Regional Balanced Development will begin its work with its first meeting on the 24th.

Resistance from members of these banks is expected to be strong. The National Financial Industry Union has taken a hardline stance, stating that it would not hesitate to strike if the relocation plan expands across the industry. This applies not only to the Korea Development Bank but also to other financial public enterprises. A financial public enterprise official said, "Just as the National Pension Service (NPS) experienced significant staff attrition when it relocated to Jeonju, there will be concerns about staff outflow," adding, "This could lead to a weakening of the competitiveness of financial public enterprises."

This content was produced with the assistance of AI translation services.