The Korea Trade Insurance Corporation (K-SURE) labor union has joined the opposition against the relocation of the Financial Supervisory Service (FSS) and the Korea Deposit Insurance Corporation (KDIC).
According to K-SURE, union chairman Park Hong-cheol attended a joint press conference held in front of the Blue House on August 24, where he stated, "The FSS and KDIC are key infrastructures for national financial stability that must respond first to market disruptions and prevent the spread of financial consumer harm." He added, "Just as an air traffic control tower cannot be located outside the airport for safe and systematic takeoffs and landings, institutions responsible for financial stability must be situated at the heart of the financial market."
He further argued that K-SURE, as a national financial infrastructure responsible for global export finance, should not be included in the relocation plans. "K-SURE is a public export credit agency (ECA) that generates export finance in collaboration with banks through insurance and guarantees," he emphasized, noting that real-time collaborative networks with financial infrastructures, including domestic and international banks and legal and accounting advisory firms, are crucial for success.
This means that when shocks occur in the financial and foreign exchange markets, K-SURE must compensate for the losses of banks that have transactions with export companies to prevent external shocks from transferring to the financial sector. The union explained that the FSS and KDIC work to prevent the spread of financial company insolvency to the financial system and depositors.
Park stated, "If K-SURE is a buffer for export finance, then the FSS and KDIC are buffers for financial institution insolvency," and warned that a uniform relocation ignoring the unique characteristics of these institutions could weaken the competitiveness of national financial infrastructure.
The K-SURE union is demanding that the government halt the review of the relocation of the FSS and KDIC and exclude K-SURE from the relocation targets. The union clarified, "This is not merely a demand to protect our workplaces, but to safeguard the expertise and collaborative systems accumulated over decades, as well as the public services provided to the nation and businesses, and to maintain the country's export competitiveness."
* This article has been translated by AI.
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