Ministry Relocations Cost 2.5 Billion Won and Counting... What Is the Total Price Tag for the 'Domino Moves'?

As the follow-up relocation process following the split of the Ministry of Economy and Finance gains momentum, the initial costs for office setup and moving for the Ministry of Strategy and Finance and the Ministry of Planning and Budget have been found to reach approximately 2.5 billion won. With additional interior work and the subsequent chain of related ministries relocating, the total expenditure is expected to increase by several billion won more.

According to relevant ministries on May 6, the Ministry of Strategy and Finance recently allocated approximately 1.745 billion won for "office environment setup" construction costs at the Central Building of the Government Complex Sejong. Specifically, 314.4 million won has been allocated for fire safety, 207 million won for communications, 591.5 million won for architecture and mechanical work, and 632 million won for electrical work. These costs are required to remodel and reconfigure the ninth floor of the Central Building, previously used by the Ministry of Planning and Budget, and are essentially for renovation purposes. It is known that this space will later be shared by the Ministry of Strategy and Finance, the Ministry of the Interior and Safety, and the National Agency for Administrative City Construction (NAACC).

Currently, the Ministry of Planning and Budget is in the process of relocating to Building 5, which is approximately 240 meters away in a straight line from the Central Building. To move into the building previously used by the Ministry of Oceans and Fisheries, the Ministry of Planning and Budget has allocated 770.6 million won solely for internal remodeling and construction. New work support facilities, including a large conference room, data center, video studio, and briefing room, are planned for this space. This means that not only is the office being relocated, but its functions are also being restructured in parallel.

Analysts point out that this relocation is not limited to the movement of individual ministries but marks the starting point for a "chain relocation" involving a complete reorganization of the entire Sejong Government Complex, making it inevitable that costs will rise. According to the government complex reorganization plan led by the Ministry of the Interior and Safety, the NAACC, currently located in Building 6, will move into the Central Building space vacated by the Ministry of Planning and Budget. Afterward, the energy department, which was transferred from the Ministry of Trade, Industry and Energy to the Ministry of Climate, Energy and Environment, is expected to move into the space vacated by the NAACC.

A panoramic view of the Central Building of the Government Complex Sejong where the Ministry of the Interior and Safety and the Ministry of Strategy and Finance are located. The Asia Business Daily

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The construction and interior costs required for these subsequent relocations have not yet been fully reflected in the budget. For ministries such as the NAACC and the Ministry of Climate, Energy and Environment, most of the office space setup and facility relocation costs remain in the pre-contract stage. As a result, the currently confirmed construction cost of 2.5 billion won is assessed to represent only the "initial stage" of the total relocation expenses. A government official stated, "Following the relocation of the Ministry of Planning and Budget, several ministries, including the Ministry of the Interior and Safety, the Ministry of Climate, Energy and Environment, and the NAACC, are preparing to move sequentially," adding, "Since each ministry allocates construction and relocation costs separately, the final total is likely to be even greater."

In particular, since each ministry requires different space functions and facility levels, there is a strong possibility that costs will increase beyond simple office relocations. If special facilities such as video production equipment, security systems, and IT infrastructure are included, construction expenses can rise rapidly. It is also a burden that, as relocations between government buildings are repeated, the costs of restoring existing spaces and setting up new ones occur simultaneously.

The budget allocation does not end with simple renovation costs. Previously, the National Assembly Budget Office estimated that the fiscal expenditures resulting from the split of the Ministry of Economy and Finance would amount to 47.7 billion won from this year through 2030. This means an average annual fiscal burden of 9.5 billion won over five years, with 3.8 billion won, or about 80% of the total, allocated for personnel expenses. This figure reflects only the minimum operational costs resulting from the organizational split and is known not to fully include expenses for office relocation and space reorganization such as those occurring now.

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