Relocating Export Finance to Busan? Concerns Rise Over Delays in $350 Billion Korea-U.S. Investment Project

Korea Trade Insurance Corp. Labor Union Pushes Back Against Possible Relocation to Busan with KDB, Eximbank, and IBK
"Dispersing the Financial Ecosystem Will Weaken Export Competitiveness... Overseas ECAs Are Also Located in Financial Hubs"

Participants of the National Financial Industry Labor Union are shouting slogans at a press conference condemning the hasty attempt to relocate the national policy bank to the provinces in front of the Blue House Sarangchae. August 18, 2026. Photo by Yonhap News.

With the government's second round of public institution relocations imminent, opposition is mounting among national policy financial institutions. In particular, as Busan City has named Korea Development Bank, Export-Import Bank of Korea, Industrial Bank of Korea, and Korea Trade Insurance Corporation (Korea Trade Insurance Corporation, Mubo) as its key targets for relocation, concerns are growing within the Korea Trade Insurance Corporation that the country's export finance capabilities may be weakened.

On September 8, the Mubo labor union stated, "The core driver of public export credit agencies (ECAs) at the forefront of export competitiveness is the concentrated financial ecosystem," and warned, "A uniform regional relocation that disregards the functional characteristics of each institution could have more drawbacks than benefits."

Korea Trade Insurance Corporation is not merely a financial institution; it is a core national export finance agency that supports export companies from client discovery to export payment collection and the review of large-scale project financing (PF). The amount of trade insurance provided by Mubo reaches 268 trillion won annually.

Officials from the National Office Finance Service Labor Union held a press conference on the 25th at the fountain in front of the Blue House in Jongno-gu, Seoul, demanding "the cessation of the unilateral attempts to relocate the National Agricultural Cooperative Federation, Teachers' Pension, Korea Inclusive Finance Agency, and Credit Recovery Committee to provincial areas." 2026.8.25 Yonhap News Agency

Real-Time Collaboration With Financial Institutions and Government..."Physical Dispersion Is the Problem"

The central concern of the union is the fragmentation of the financial ecosystem. Given the nature of Mubo’s work, it must make real-time decisions and consult with commercial banks, national policy banks, government ministries, financial authorities, and domestic and overseas investment institutions. The union argues that relocating outside the Seoul metropolitan area could slow policy response times.

In rapidly changing external risk situations – such as shifts in U.S. trade policy or Middle East affairs – financial support and policy coordination must be decided quickly. The union claims that if key policy financial institutions are scattered, support for export companies will ultimately be delayed.

The ongoing South Korea-U.S. strategic investment project, worth $350 billion, was also cited as a source of concern. Mubo, along with Korea Development Bank and Export-Import Bank of Korea, is responsible for supporting finance and negotiating orders for large-scale international projects.

The union argued, "When policy financial institutions need to operate as a unified team for major overseas projects, increased physical distance between institutions can slow and reduce the effectiveness of negotiations and decision-making.” It added, “This could also hinder support for the South Korea-U.S. strategic investment project.”

The Korea Trade Insurance Corporation Labor Union held a rally opposing the regional relocation on August 24 at the Korea Trade Insurance Corporation in Jongno District. Mubo Labor Union

Remained in Capital Area During First Relocation..."Regional Support Via Nationwide Branch Network"

During the first phase of public institution relocations, Korea Trade Insurance Corporation remained in the capital area due to the need to foster connections between policy financial institutions and develop Northeast Asia into a financial hub.

The labor union stressed that the financial infrastructure and networks established over decades in Seoul are a fundamental foundation for Korean companies’ overseas expansion. It also argued that even without relocating its headquarters, the corporation supports local businesses through a nationwide branch network to promote balanced regional development.

Korea Trade Insurance Corporation operates 18 regional branch offices nationwide, as well as a specialized organization for marine finance in Busan. Support for small and medium-sized enterprises and mid-sized firms also reached an all-time high of 109 trillion won.

A union official said, "The current structure—where international finance and large project functions are managed at the Seoul headquarters and field operations and business support are conducted through the nationwide branch network—is the most efficient."

The union also underscored that most major ECAs worldwide have their headquarters in the capital or in economic and financial centers.

For example, the UK Export Finance (UKEF) is headquartered in London; the French Public Investment Bank (Bpifrance), in Paris; and the U.S. Export-Import Bank (US-EXIM), in Washington D.C.

According to the union, Japan—which has a similar economic and industrial structure to South Korea—also considered relocating Nippon Export and Investment Insurance (NEXI) and ultimately decided to keep it in Tokyo.

"This was based on considerations of the distinctive features of export finance—which requires close negotiations with private financial institutions and real-time communication with key export companies—choosing practical national export competitiveness over the justification of balanced regional development," stated a union official.

Members of the People Power Party from the Busan region issued a statement on September 2, 2026, at the National Assembly, urging the re-promotion of relocating the Financial Services Commission and the Financial Supervisory Service, which are considering moving to Sejong, as well as the Industrial Bank headquarters, to Busan. Photo by Yonhap News Agency

Loss of Professional Talent Also a Concern..."Highly Specialized Review Capabilities Could Be Undermined"

The potential loss of professional talent is also a major issue. Because trade insurance review and large-scale project financing require a high degree of expertise, a mass departure of professionals during the headquarters relocation could weaken risk management capabilities.

The union also raised employment concerns for staff responsible for building management and facility operations, arguing that relocation to an area with no existing ties could, in effect, force some employees to give up their jobs.

In response, the union urged the government to thoroughly assess the unique characteristics of policy financial institutions and the impact on the nation's export competitiveness when deciding on relocation. It also demanded that the opinions of the union and export companies in the field be adequately gathered in the relocation discussions.

A union official stated, "Mubo must work closely with domestic and international financial institutions to provide finance for high-risk, large-scale, long-term projects that the private financial market cannot handle." The official added, "The issue of Mubo’s relocation is not simply a matter of where to place the headquarters, but rather a question of how to maintain the national export finance ecosystem."

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