Gov't financial institution staff concerned over relocations as election season heats up

The Export-Import Bank of Korea headquarters in Seoul / Yonhap

By Kim Hyun-bin

The ruling Democratic Party of Korea's (DPK) move to relocate state-owned financial institutions in Seoul to provincial areas is raising concerns among workers in that industry.

With the presidential election slated for March of next year, the ruling party seeks to relocate public institutions to regions outside of the capital, claiming that the move will stimulate balanced development in other parts of the country. But those financial institutions are concerned that the efficiency of their operations will be impacted if the relocation plan becomes a reality.

According to financial industry sources, the ruling party is pushing ahead with the relocation plan. The ultimate goal is to relocate all 200 public institutions, including a large number of state-run financial institutions located in Seoul, to provincial areas.

The relocation of financial institutions has been on the agenda during practically every election held in recent years. Before the general election in 2019, a number of bills were proposed for the relocation of state-run banks, such as Korea Development Bank and Export-Import Bank of Korea.

In November of last year, Rep. Song Ki-hun of the DPK proposed a bill that would allow the headquarters of Korea Development Bank, Industrial Bank of Korea, and Export-Import Bank to be relocated to areas outside of Seoul. The bills are still pending at the National Assembly.

Many local governments would happily have these financial institutions relocated to their respective provinces. Gangwon Province has shown an interest in attracting the Bank of Korea, the Financial Supervisory Service, and the Korea Deposit Insurance Corp.

On the other hand, the financial sector is not welcoming the move, claiming it will reduce the efficiency of their operations by requiring more time to be wasted on traveling to Seoul to hold meetings with the National Assembly, private financial institutions and government agencies in Seoul. Another concern is a possible decline in the number of people seeking to work at the state-run institutions once they are relocated to provincial areas outside of Seoul.

"I have to travel to Seoul every time, but it is inefficient because there is a lot of time wasted on the road,” an official at a public financial institution said.

The inconvenience of the moves stand as another problem, which industry officials say will force most employees to be separated from their families, as prime school districts and other key facilities are clustered in the capital region.