FSC and FSS Relocation to Sejong Excluded for Now... Final Decision in Fourth Quarter

Government Announces Direction for Second Phase of Regional Relocation
Final Decision on Relocation Plans for Institutions, Including the Financial Services Commission, to Be Announced in Q4
Yoon Hojung: "Institutions Not Mentioned Today Are Not

The potential relocation of the Financial Services Commission—which has drawn significant attention from the financial sector—was not included in the second phase of the public institution relocation plan announced on September 3. However, since the government has reaffirmed its principle of "minimizing retention in the Seoul metropolitan area" and plans to finalize the specific list of institutions to be relocated by the fourth quarter, tension surrounding the possibility of local relocation for financial authorities is expected to persist for the time being.

Yoon Hojung, Minister of the Interior and Safety, is speaking at a press conference related to the relocation of administrative and public institutions and the reform of public institution functions at the Government Seoul Office in Jongno-gu, Seoul on September 3, 2026. Photo by Jo Yongjun

On this day, the government unveiled the "Principles and Direction for the Second Phase of Public Institution Relocation" at the Government Seoul Office in Jongno-gu, Seoul. Beginning in the first half of 2027, central administrative agencies located in the Seoul metropolitan area—such as the Ministry of Justice and the Ministry of Gender Equality—will sequentially relocate to Sejong. The decision regarding the relocation of other administrative and public institutions, including the Financial Services Commission, will be finalized by the relevant ministries after review and will be subject to deliberation and approval by the Committee for the Local Era, with the final announcement set for the fourth quarter of this year.

Yoon Hojung, Minister of the Interior and Safety, responded to questions about the possible relocation of the financial authorities, stating, "Just because an agency was not mentioned today does not mean it is excluded from the relocation list," and added, "We will finalize the list of institutions subject to relocation within the fourth quarter." Although the potential relocation of the Financial Services Commission and the Financial Supervisory Service was not specifically addressed at today’s briefing, the possibility remains open and will be discussed further.

With no concrete relocation plan announced for the financial authorities today, they have received temporary reprieve. However, since the government has reiterated the principle of minimizing metropolitan area retention, the possibility of relocation to a regional city has not been entirely ruled out.

The financial authorities continue to experience anxiety stemming from this uncertainty. An official from the Financial Supervisory Service commented, "Rather than a sense of relief, there is a prevailing sentiment that, because nothing has been decided regarding the financial authorities, we should continue monitoring developments."

Previously, internal sentiment at the Financial Services Commission in the Government Seoul Office leaned toward accepting the move to Sejong as virtually inevitable. This was due to the government's consistent emphasis on balanced national development since its inception, as well as the stated intention to relocate any institution that does not have a compelling reason to remain in the metropolitan area.

The possibility of relocation has also been consistently raised for the Financial Supervisory Service, located in Yeouido, Seoul. Within the financial authorities, concerns have been voiced that, since financial companies and related infrastructure are concentrated in the metropolitan area, moving to a regional city could prompt a loss of professional talent and lead to operational inefficiencies. In a recent statement, the labor union of the Financial Supervisory Service argued, "91.6% of financial company headquarters and 72.7% of listed company headquarters are concentrated in the metropolitan area, so relocating to a regional city would generate significant additional costs for financial supervision."

Among financial companies subject to supervision by the Financial Supervisory Service, concerns have also arisen that the burden of supervisory fees could increase. If the most likely relocation destination—Sejong—were to become reality, trips to Seoul, where financial companies are clustered, would inevitably become more frequent. As travel and accommodation expenses rise during supervisory inspections, the overall cost required for supervisory work by the Financial Supervisory Service would increase, which could, in turn, affect the supervisory fees paid by financial companies.

The banking sector, which has been closely monitoring the possible relocation of the financial authorities, also expressed concern that operational efficiency could decline if the authorities move to Sejong. An executive at a commercial bank explained, "It is common for headquarters staff to visit departments at the Financial Supervisory Service to coordinate work, and our own executives also have to visit the financial authorities at least once or twice a month. If the Financial Supervisory Service relocates to Sejong, there will be more instances where meetings have to be held via video conferencing tools such as Zoom. This is inconvenient in practice and limits the quality of communication."

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