"If Relocated, I'll Resign"—40% of Millennial and Gen Z Employees Threaten to Quit Amid Second Round of Regional Relocations [Unstable Public Institutions]

Financial Services Commission, Ministry of Justice, and Mutual Aid Associations Among 300 Institutions Considered for Relocation
Metropolitan Area Mayoral Candidates Enter "Defense Mode" Ahead of Local Elections
75% of Public Institution Employe

With the announcement of the second round of public institution relocations from the Seoul metropolitan area to provincial regions approaching, each local government is putting everything on the line to attract large institutions, describing this as a breakthrough to prevent regional extinction. They have already established dedicated task forces for this purpose. Meanwhile, metropolitan municipalities have launched a defensive campaign to "block the outflow" of local agencies, and the issue has emerged as a key topic in the local elections scheduled to take place in about 40 days on June 3. Among younger employees, there is growing resistance, with some saying, "If I am relocated to a provincial area, I will resign," signaling further complications ahead.

"To Our Region"—Customized Competition Among Local Governments Heats Up

In March, the Public Corporation Labor Union Council urged the government to exclude them from the second round of public institution relocation to local areas. Public Corporation Labor Union.

According to the government and local authorities as of April 21, the relocation of around 300 institutions—including public institutions, non-designated institutions, government ministries, and mutual aid associations—is being discussed. There are a total of 162 public institutions in the metropolitan area. An additional 183 "non-designated institutions," which meet the requirements to be classified as public institutions but have not yet been designated as such, also exist. While there are no official statistics on the locations of these non-designated institutions, a significant number are believed to be in the metropolitan area, with the Financial Supervisory Service in Seoul’s Yeouido district serving as a representative case. In addition, government ministries excluding diplomacy and defense—such as the Financial Services Commission, Ministry of Gender Equality and Family, and Ministry of Justice—along with the nine major mutual aid associations (for military personnel, police, teachers, local administration, science and technology professionals, firefighters, local finance, construction workers, and correctional officers), are also being considered for relocation.

Local governments have already established special teams and are working on customized strategies. The Gwangju Metropolitan City in the Jeonnam-Gwangju Special Integrated City has proposed the relocation of a total of 40 institutions to the government, including 10 major agencies with significant influence and scale—such as Korea Racing Authority, National Agricultural Cooperative Federation, National Federation of Fisheries Cooperatives, Korea Airports Corporation, and Korea District Heating Corporation. The atmosphere is optimistic, especially after Prime Minister Kim Minseok and Minister of the Interior and Safety Yoon Ho-jung stated that "relocation to the integrated region will be given priority."

North Jeolla Province is seeking to attract 40 institutions, including the National Agricultural Cooperative Federation, Korea Investment Corporation, Korea Racing Authority, Bank of Korea, and the nine major mutual aid associations. Recently, the province has been visiting the institutions it wishes to attract by department. In particular, Jeonju is pursuing the designation of a "third financial hub" by adding public institution relocations to its existing financial ecosystem centered on the National Pension Service.

Regional block-based "industry package" competitions are also intensifying. Busan, Ulsan, and South Gyeongsang Province are focusing on marine, data, and defense sectors, targeting institutions such as the Korea Institute of Marine Science & Technology Promotion and Financial Security Institute. The Chungcheong region aims to establish itself as a hub for carbon neutrality and science and technology research & development (R&D), listing Korea Environment Corporation and KORAIL Networks as candidate institutions. Daegu and North Gyeongsang Province are also making all-out efforts to attract key institutions such as IBK Industrial Bank of Korea and the Korea Agency for Infrastructure Technology Advancement, focusing on corporate finance. Additionally, there are discussions about relocating the Financial Services Commission and Ministry of Justice to Sejong City, and the Financial Supervisory Service to Wonju. The Supreme Court, Constitutional Court, and Board of Audit and Inspection are also being considered for relocation.

Metropolitan Area "Defense" vs. Provincial "Competition"... Will Post-Election Conflicts Intensify?

In response, metropolitan municipalities are ramping up their efforts to defend their institutions. Gwacheon, home to the Korea Racing Authority, has made clear its opposition to relocation, citing the potential economic impact on the local community. The issue is also emerging as a major point of contention in the local elections, which are now about 40 days away. Democratic Party candidate and Assemblywoman Chu Mi-ae, running for Gyeonggi Province Governor, has proposed resolving internal imbalances within the metropolitan area as a solution, highlighting her defensive strategy. Yoo Jeong-bok, the People Power Party’s candidate for Incheon Mayor, has stated that he will prevent the outflow of agencies integrated with the region’s industrial infrastructure in aviation, bio, and environment. Oh Se-hoon, the People Power Party’s candidate for Seoul Mayor, has not made a public statement yet, but he has a history of opposing the relocation of Korea Development Bank in the past.

Political circles predict that, after the elections, there will inevitably be a heated debate over whether this is a matter of "national balanced development or undermining national competitiveness." There is also ongoing backlash from mutual aid associations, which argue that they are not public institutions funded by the state but rather private, member-contributed, self-help organizations, and thus "are not legally subject to relocation." If mutual aid associations are ultimately included in the relocation targets, controversy is expected. One official from a mutual aid association predicted, "If we are included as relocation targets, it is highly likely that the government will recommend relocation through voluntary business agreements and similar mechanisms."

Ministry of Land, Infrastructure and Transport "Maximum Security"... 4 out of 10 Millennials & Gen Z Employees Say They Would Resign if Relocated

According to a survey of public institution employees conducted by the Institute for Social Public Research, 74.8% opposed the relocation to provincial areas. Institute for Social Public Research.

The Ministry of Land, Infrastructure and Transport, which has made the second round of public institution relocation its top national land policy priority for this year, has implemented "maximum security" measures to prevent overheated competition and regional conflict. To fulfill National Policy Task 51 (Fostering Balanced Growth Hubs, including the second round of public institution relocations), the ministry is conducting a comprehensive review, including a full survey of each institution and complaints from local governments, to develop a roadmap. At this point, it is likely that the announcement will be made after the local elections. A government official stated, "The scale of relocation by region and the timing of the announcement could trigger emotional conflicts between regions, so security will be maintained until the final announcement."

Meanwhile, sentiment within the institutions being considered for relocation remains cold. According to a recent survey conducted by the Institute for Social Public Research of 5,805 employees at 21 metropolitan-area public institutions, 74.8% opposed relocation to provincial areas. Notably, 48.9% of employees in their 20s and 39.4% of those in their 30s said they would consider resigning if relocation became a reality—significantly higher than the rates for those in their 40s (27.6%) or 50s (17.3%). The main reason cited was the inability to give up access to Seoul’s educational and medical infrastructure. One respondent said, "Many households with infants or lower-elementary children rely on grandparents for childcare. Relocation to a region with no family ties is essentially a demand to give up our careers, so I can’t help but consider resigning."

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