Government to Announce Plan for Relocation of Public Institutions

The government will unveil its plan for the relocation of administrative and public institutions on September 3. A reform plan to adjust the functions of public institutions will also be announced.
 
The Prime Minister's Office stated that a press conference on "Relocation of Administrative and Public Institutions and Reform of Public Institution Functions" will be held on the morning of September 2, chaired by Prime Minister Han Seung-soo at the Government Seoul Complex. The conference will include participation from Minister of the Interior and Safety Yoon Ho-joong, Minister of Land, Infrastructure and Transport Kim Yoon-deok, and Deputy Minister of Finance and Economy Heo Jang.
 
As the Ministry of the Interior and Safety will oversee the relocation of administrative agencies, the Ministry of Land, Infrastructure and Transport will handle the relocation of public institutions, and the Ministry of Finance and Economy will manage the reform of public institution functions, the relevant ministries are expected to explain the policy direction and implementation plans together. Discussions are anticipated on how to adjust similar and overlapping functions of public institutions and how to link the relocation of these institutions to the development of local industries.
 
The government aims to distribute public institutions and quality jobs, which are currently concentrated in the metropolitan area, to foster growth in regional areas. The promotion of the relocation of companies and public institutions, along with investment incentives, was also highlighted as a key agenda item at the National Land Transformation Interagency Council held the previous day.
 
However, there has been significant pushback, particularly from financial public institutions, regarding the relocation. Unions from the Industrial Bank, Korea Development Bank, and Export-Import Bank held a joint rally on August 11 in Yeouido, Seoul, with an estimated 2,000 participants, arguing that relocating policy banks could undermine their competitive edge in policy finance and operational efficiency.
 
On August 24, unions from the Financial Supervisory Service and the Korea Deposit Insurance Corporation also held a joint press conference opposing the relocation. The National Financial Industry Labor Union has announced a general strike on September 4, demanding a halt to the unilateral relocation of financial institutions.