KDIC, FSS Unions: "Relocation to Provinces Will Undermine Financial Safety Net... Must Be Excluded from Target List"

Joint Press Conference Held in Front of the Blue House on the 24th

"Core Infrastructure Such as Financial Firms, Legal and Accounting Services Concentrated in Seoul Metropolitan Area"

85.6% of FSS Members Considering Leaving Their Jobs

The Korea Deposit Insurance Corporation (KDIC) and the Financial Supervisory Service (FSS) labor unions have called on the government to exclude both organizations from the second phase of public institution relocations to provincial areas. They argue that relocating depositor protection and financial supervisory institutions outside the Seoul metropolitan area—where financial companies and related infrastructure are concentrated—could delay crisis response and lead to an exodus of experts, ultimately harming financial consumers.

On August 24, the labor unions of both organizations held a joint press conference in front of the fountain at the Sarangchae of the Blue House in Jongno-gu, Seoul, declaring, "We oppose the unilateral relocation to provincial areas, as it undermines the financial safety net and shifts damage onto financial consumers."

While expressing support for the goal of balanced regional development, both unions insisted that the location of institutions responsible for financial stability and consumer protection should be considered differently from other public agencies. They pointed out that not only the headquarters of financial companies subject to KDIC protection and FSS supervision, but also relevant infrastructure such as financial authorities, law and accounting firms, and information technology (IT) specialist institutions, are clustered in the greater Seoul area.

They further emphasized that financial company insolvencies can spread rapidly, and increased physical distance between institutions could cause delays in crisis response and decision-making. The unions stressed, "There is a golden window in a financial crisis. If the financial safety net is separated from the financial hub, the resulting damage will ultimately mean loss of wealth for the public."

They also raised concerns about the potential outflow of specialists. According to a union survey of 1,538 FSS members conducted from August 18 to 20, 85.6% said they would consider changing jobs if relocated to a provincial area, based on union calculations. Of these, 69.7% said they would actively consider it. Among employees under 40, 92.5% indicated a willingness to leave. The figures for accountants and lawyers were 90.6% and 94.2%, respectively.

The unions demanded that the government exclude the KDIC and FSS from the list of institutions subject to relocation and review relocation plans based on the effectiveness of the financial system and crisis response. They also called for a public analysis of the costs and benefits of relocating these key parts of the financial safety net, and urged an end to policies that require young employees to make sacrifices in terms of housing, family, and career development.

With relocation plans for central administrative agencies—including the Financial Services Commission—expected to be discussed as early as August 25 at a Cabinet meeting, opposition within the financial sector is growing. As discussions on relocating administrative agencies begin in earnest, debate over relocating financial-affiliated institutions such as the FSS and KDIC is also likely to accelerate.

This content was produced with the assistance of AI translation services.