The government is officially starting the second phase of relocating public institutions from the Seoul metropolitan area, focusing on those that do not need to remain in the capital. The criteria for remaining in the metropolitan area, used during the first phase of relocation, will be re-evaluated from scratch. The plan aims to consolidate similar-function institutions around existing innovation cities.
Specific plans detailing the institutions and their new locations will be finalized in the fourth quarter of this year, with the relocation of leading institutions set to begin next year.
On September 3, the Ministry of Land, Infrastructure and Transport announced the 'Principles and Directions for the Second Phase of Public Institution Relocation.' The five principles outlined by the government include: minimizing the retention of institutions in the metropolitan area, concentrating on existing innovation cities, linking regional universities and industries, expanding self-sufficient living bases, and ensuring a swift relocation process.
The most significant change is the criteria for selecting institutions for relocation. The government plans to reassess the criteria for remaining in the metropolitan area that were applied during the first phase of relocation. Institutions that do not have a compelling reason to stay in the metropolitan area will be actively included in the relocation plan.
The first phase of relocation took place from 2005 to 2019, during which 150 institutions and approximately 50,000 employees moved to regional areas. About 70% of those employees settled in the regions with their families, leading to increased business and employment around innovation cities.
However, the government assessed that the dispersal of individual institutions across various regions did not yield the expected benefits in terms of inter-industry connections and the creation of industry-academia clusters. The concentration in the metropolitan area also remained fundamentally unresolved.
In the second phase, the government will focus on consolidating related institutions around existing innovation cities. The decision on relocation sites will consider the functions of each institution, the five growth engines, existing innovation city functions, and regional infrastructure. Collaboration between regional universities and relocating institutions, as well as the hiring of local talent, will also be expanded.
This strategy represents a shift from the first phase, which focused on distributing institutions across regions, to utilizing public institutions as anchors for regional industrial ecosystems.
The method of relocation will also change. The first phase took over seven years from the announcement of plans to the actual relocation of institutions due to the time required for site selection and construction. This time, the government plans to actively utilize private building leases, aiming to relocate leading institutions starting in 2027. This means that the selection of relocating institutions will not necessarily be tied to the construction of new government buildings.
Support measures to encourage employees to relocate to regional areas will also be expanded. In addition to existing relocation allowances and moving expenses, a new long-distance allowance will be introduced, providing up to 200,000 won per month for two years based on the distance of the move. Employees who relocate early will receive an early relocation allowance of up to 500,000 won per month for two years.
The government also plans to establish additional support measures with relevant ministries to ensure housing stability and reduce gaps in education and childcare for children. The central and local governments will work together to enhance the living infrastructure in innovation cities, including transportation, education, healthcare, and culture.
However, the specific institutions and regions targeted for relocation were not disclosed on this day. The selection of institutions will be determined after review by the relevant ministries and discussions within the Special Committee on Relocation of the Era of Local Autonomy. The relocation areas for each institution will also be finalized later, considering regional industries, existing innovation city functions, and infrastructure.
Kim Yoon-deok, Minister of Land, Infrastructure and Transport, stated, “We will promote the second phase of public institution relocation based on the five principles presented, while ensuring sufficient communication with relevant agencies to create a reasonable relocation plan.”
* This article has been translated by AI.
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