Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Yoon's victory puts state-run lenders in distress over possible relocation
President-elect Yoon Suk-yeol talks to reporters about his transition committee plans at the headquarters of the People Power Party (PPP) in Yeouido, Seoul, Sunday. Yonhap
By Yi Whan-woo
By Yi Whan-woo
The employees of state-run financial institutions are concerned about the growing possibility of the relocation of their respective institutions out of Seoul after Yoon Suk-yeol won the presidential election last week, according to industry sources, Sunday.
Yoon has pledged to move Korea Development Bank (KDB) to Busan as part of efforts for balanced regional development. He also hinted at pressuring other state-owned institutions to move their headquarters by saying, “The sole relocation of KDB will not be sufficient.”
The relocation issue of government-owned financial institutions has been brought up in past elections.
However, Yoon's promise is unnerving employees of the targeted companies more than ever, after Busan Metropolitan City attributed the failure of the Busan International Finance Center (BIFC) in housing enough leading financial companies and convinced Yoon to bring such companies from Seoul.
The BIFC is supposed to help the port city propel itself as a maritime financial hub in Northeast Asia.
Among the targeted institutions are the Export-Import Bank of Korea (Eximbank), Industrial Bank of Korea (IBK) and Korea Investment Corp. (KIC).
All four institutions were unavailable for comment, Sunday.
However, the KDB union has for months opposed the idea of relocation, arguing that it is “merely based on political interests without considering the unique role of the bank.”
A union representative warned of mass departures of talented workers and inefficiency, saying, “Many workers are seriously thinking about leaving their jobs.”
KDB Chairman Lee Dong-gull also criticized the election pledge. During a press conference in January, he called the idea, “penny wise and pound foolish.”
On March 7, Yoon's pledge was soon met with protest from unionists from nine major banks.
They were KDB, Eximbank, IBK and four private lenders ― KB Kookmin, Woori, Hana and NongHyup ― plus foreign banks operating here such as Standard Chartered Bank Korea and Citibank Korea.
In a joint statement, they said the relocation would result in a “collapse” of the system and the network they have built over decades in the nation's capital.