Incoming gov't urged to be cautious in setting up regional banks
The headquarters of BNK Busan Bank, one of the country's regional banks, is seen in this photo taken in 2019. Korea Times fileBy Yi Whan-wooWhile the incoming government of Yoon Suk-yeol is pushing to decentralize banking headquarters densely concentrated in Seoul in the name of balanced regional development, industry analysts are recommending a cautious approach, as regional banks are susceptible to economic risks in the regions where they operate.They say that Seoul-headquartered banks, if they are relocated outside the nation's capital, may struggle with the downsides of the regional economies that are beginning to take a toll on provincial banks, rather than contributing to balanced economic growth nationwide.The risks include the slump of backbone industries ― namely automobiles, shipbuilding and maritime shipping ― in the cases of Busan, Ulsan and South Gyeongsang Province in the country's southeast, which are home to many manufacturing businesses.For Gwangju and North Jeolla Province in the southwest, plus Jeju Island, the declining population and departure of young people in
Apr 4, 2022By Yi Whan-woo