Concerns are rising that a potential relocation of the Deposit Insurance Corporation (DIC) could lead to a significant exodus of young employees. The low willingness of key mid-level staff to remain, particularly among 4th and 5th grade employees, raises alarms about possible disruptions in collaboration with financial authorities.
Sources indicate that plans are being considered to move the Financial Services Commission and the DIC to Sejong.
According to a survey commissioned by the DIC labor union and conducted by the law firm Lin's Financial Law Research Center, only 24.1% of the 740 employees surveyed expressed a willingness to continue working after a potential relocation.
The likelihood of departure is notably higher among younger employees. Among the 4th and 5th grade staff, who make up 70.2% of the workforce, only 9.5% of those in their 20s and 30s indicated they would stay, with 70% stating they would not. For 4th grade employees, who are predominantly in their 30s and 40s, the willingness to remain was only 21.7%. Additionally, only 12% of employees with less than five years of service expressed intent to stay.
In contrast, over 55% of employees in their 50s and more than 52.8% of those with over 20 years of service indicated they would continue working. This suggests that younger employees with shorter tenures are more likely to leave if the relocation occurs.
The primary concerns for employees revolve around commuting conditions, child education, and spouses' job situations, with both issues affecting 93% of respondents. The fact that 99.2% of respondents reside in the Seoul and Gyeonggi-Incheon areas likely contributes to these concerns.
Employee departures could weaken the DIC's operational capabilities. About 86.1% of staff believe that collaboration with related agencies, such as the Financial Services Commission and the Financial Supervisory Service, would suffer as a result of the relocation. Key tasks that could be impacted include inspections, joint inspections, decisions on handling insolvent financial institutions, risk notifications, and the payment of insurance claims to depositors.
The DIC is responsible for early detection of financial institution insolvencies and coordinating responses with financial authorities. Effective collaboration is crucial for managing insolvent financial institutions, providing financial support, and protecting depositors. Concerns are growing that the loss of experienced personnel and diminished inter-agency collaboration could slow crisis response times.
The research also concluded that the economic impact on the local area would be limited. As the DIC is a non-capital special corporation, its contribution to local taxes is minimal, and its fund management is restricted to safe assets like government bonds, bank bonds, and deposits, making it difficult to translate into local investments.
However, even if the direct tax and investment effects are limited, it is important to consider indirect effects such as local talent recruitment and increased consumer spending. There are calls to develop measures that preserve the DIC's crisis response capabilities while also fulfilling the intent of the relocation.
In the financial sector, maintaining a Seoul office, implementing a rotation system for key personnel, and establishing a permanent joint response system with the Financial Services Commission and the Financial Supervisory Service are being discussed as alternatives. Before debating the pros and cons of the relocation, it is essential to first establish mechanisms to minimize employee departures and operational gaps.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.