Opposition grows among state-backed banks, including KDB and IBK, against relocation to provinces

As the government pushes to move the headquarters of major state-owned financial institutions outside the capital, labor unions of KDB, IBK, and the Export-Import Bank of Korea (KEXIM) held a rally opposing the plan, citing concerns over "organizational gaps and service degradation."

KDB is legally required to maintain its headquarters in Seoul under the current Korea Development Bank Act, while the Financial Supervisory Service (FSS) is also mandated to keep its main office in Seoul under the Financial Services Commission Establishment Act. Therefore, revising individual acts governing the location of headquarters for each institution is inevitable for relocation. As the government's relocation plans take shape, the National Assembly's Legislation and Judiciary Committee is expected to become the stage for related legislative discussions.

Rep. Park Hong-bae of the Democratic Party, a former chairman of the Financial Industry Union, has expressed conditional support for relocating KDB, specifically asserting that if the move happens, it must be to Busan. Previously, during his tenure as a union leader, Park opposed the Yoon Suk Yeol administration’s push to move KDB to Busan. However, analysts suggest his stance has shifted following his recent appointments as the chairman of the Busan Sasang-gu regional committee and the Busan party chapter.

Rep. Kim Hye-jeong of the Democratic Party, a former chairman of the National Office Finance Services Union, maintains a neutral position. Although she attended the anti-relocation rally by state-run bank unions on the 11th, she did not explicitly state her stance on the move itself. She argues that the decision should be based on "national interests," comprehensively considering not only the goal of balanced regional development but also the institutions' functions and the impact on the national economy. While empathizing with labor's concerns, she appears to be leaving room for judgment.

Opposition from each institution remains distinct. Following the National Financial Industry Union's NH Nonghyup branch holding a rally in Gwanghwamun last month to block the relocation of Nonghyup's headquarters, unions of KDB, IBK, and KEXIM continued their joint rally in Yeouido.

The FSS union issued a statement on the 17th opposing the relocation to Sejong. They argued that moving to the provinces would increase supervision costs and operational inefficiency, citing that 91.6% of financial company headquarters, 88.3% of on-site inspection targets, and 81.4% of financial complaints are concentrated in the Seoul metropolitan area.