FSC's Once-Unthinkable Move to Sejong Spreads Tension at State-Run Banks, Financial Supervisory Service
FSC's Move to Sejong Becomes Reality,
Putting State-Run Banks on Edge
Public Institution Relocation Targets to Be Announced This Year
Close Watch on Whether Financial Institutions Are Included
With the Financial Services Commission's (FSC) relocation to Sejong now confirmed, tension is mounting at state-run banks such as Korea Development Bank, the Export-Import Bank of Korea and Industrial Bank of Korea, as well as at the Financial Supervisory Service. The FSC has drawn a distinction between its move as a central administrative agency and the relocation of public institutions to provincial areas. However, now that the FSC's long-discussed move to Sejong is becoming a reality, these institutions are closely watching for the possibility that they, too, could be relocated in the future.
On October 13, the government announced its “Second Plan for Relocating Central Administrative Agencies,” deciding to move the FSC to Sejong in the second half of next year. The FSC is set to relocate to a privately leased office building in Sejong.
No decision has yet been made on whether the Financial Supervisory Service and the state-run banks will be relocated. The government is reviewing the relocation of these institutions separately from its plan for central administrative agencies. Kwon Hyerin, head of the Working Group on the Great Transformation of National Spatial Planning at the Office for Government Policy Coordination, said at a briefing that day that preparations were underway to announce a plan for relocating public institutions in the fourth quarter of this year.
Staff at the Financial Supervisory Service and the state-run banks have reacted with surprise to the decision to move the FSC to Sejong. Although the FSC's relocation had been discussed for a long time, an actual decision had been repeatedly postponed, so they had not considered a move likely this time either.
Several officials at state-run banks expressed their surprise, saying, “The FSC is the control tower for the financial sector, so we never thought it would actually move to Sejong.” They said they were keeping a close eye on the government's next announcement, as the FSC's move to Sejong could introduce a new variable into future discussions about relocating public institutions.
However, staff at the state-run banks believe it is unlikely that the FSC's move to Sejong will immediately trigger a chain reaction of relocations by other financial institutions. They say that central administrative agencies and public institutions are being relocated through separate processes, and that there are many other factors to consider, including opposition from labor unions. An official at a state-run bank drew a distinction, saying, “The FSC is a government agency, but other public institutions face various issues, including opposition from the financial sector union. I don't think the FSC's move to Sejong means that the relocation of its affiliated institutions will be decided at the same time.”
Unions at the state-run banks are also considering how to respond as they monitor the government's next steps. Union leaders at the individual banks are continuing discussions and exchanges on the matter, but have yet to draw up specific response plans.
The unions are concerned that if the relocation goes ahead, staff departures could increase, particularly among younger employees. In a survey conducted last month by the KDB union of 1,986 employees, 97.4% of respondents opposed moving the bank's headquarters. A total of 57.4% said they would consider changing jobs or resigning if the headquarters were relocated; the figure rose to 69.9% among staff aged 40 or younger.
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The unions are also concerned that staff departures could weaken the institutions' work capabilities. The Financial Supervisory Service union is worried that the loss of specialized personnel could undermine its inspection and supervisory capabilities, while the Export-Import Bank of Korea union is concerned about the impact on policy-finance work requiring a high level of expertise, such as defense and nuclear power.
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