[1mm Finance Talk] Is the Push for FSS Relocation Losing Steam?... Optimism Growing Internally

FSS and Policy Bank Unions: "No Plans for Statements or Press Conferences"


Anticipation Rises after President Lee Emphasizes "Seoul as Economic Capital, Sejong as Administrative Capital"


Some Say "Even If Relocation Occurs, Only Supp

There are indications within both the Financial Supervisory Service and the broader financial sector, including state-run banks, that calls for relocating the Financial Supervisory Service (FSS) to a non-metropolitan area may be losing steam. Even if the FSS were to relocate, some predict that only certain support departments—such as secretarial, HR, and general affairs—would move, with core supervision and inspection teams remaining in Seoul.

Seoul Yeouido Financial Supervisory Service Headquarters. Financial Supervisory Service

According to the FSS and its labor union on September 30, labor unions of the FSS, Korea Development Bank, Export-Import Bank of Korea, and Industrial Bank of Korea have not established separate plans for external activities such as issuing statements or holding press conferences. Unless new variables emerge, such as remarks from the Blue House, National Assembly, or the Ministry of Land, Infrastructure and Transport, or related media reports, they plan to closely monitor the situation for now. However, they remain open to joint industrial action by the FSS and state-run bank labor unions should such variables arise.

An FSS labor union official stated, "Currently, we do not have any additional activities planned," but also explained, "Just as we held a press conference in front of the Blue House last month in response to media reports hinting at relocation, we are ready to actively stage joint actions with state-run bank unions if any significant development occurs aside from an official announcement from the political sphere."

According to the FSS and financial sector, until just before the Chuseok holiday, there was talk within the FSS that, although other government agencies such as the Financial Services Commission might relocate, the FSS would not. After Chuseok, this optimism has grown further within the organization.

FSS insiders are focusing on remarks by President Lee Jaemyung on September 18, in which he declared, "Just as there are both New York and Washington, D.C., we will usher in the era of dual capitals—Seoul as the economic capital and Sejong as the administrative capital." Given the emphasis on "economic capital Seoul," some interpret that the political establishment partly recognizes the need to keep skilled professionals and infrastructure concentrated in Seoul, considering the unique nature of the financial industry.

An FSS executive recalled, "At the end of last month, many assumed relocation was inevitable, and there was heated debate over whether the destination would be Sejong, Busan, or Wonju, but now that talk has completely died down." He continued, "Experienced staff members such as younger investigators, lawyers, and accountants were deeply unsettled, but now that the relocation discussions have subsided, there’s a palpable sense of relief, especially among younger staff."

Another FSS official shared, "It's difficult to understand what sort of discussions are taking place in political decision-making processes, so we remain alert." The official added, "With the National Assembly audit period approaching, many staff members are hoping that discussions on restructuring public institutions will lose momentum over the next month."

The FSS is refraining from making any official statements regarding the possible relocation. The labor union also plans to maintain a wait-and-see attitude until after the National Assembly audit, committing to take strong action should the FSS be formally announced as a relocation target, but holding off on any action before then.

An FSS labor union executive commented, "When the Presidential Committee on National Policy Planning discussed reorganizing the FSS Financial Consumer Protection Bureau last year, we only staged protests or other external activities after an official statement from the political sector, and the same will apply this time. If the FSS is designated for relocation, we will join forces with state-run bank unions, and will strongly stage a variety of external activities, including black-clad protests in front of the headquarters and the National Assembly, as we did last year."

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