Financial Authorities Review Jeonbuk Financial Center Bid, Eye Public Institution Relocations

Focus on potential to attract domestic and foreign financial institutions
Second public institution relocation plan expected next month
Institutions and destination regions likely to be key factors

As the government considers relocating public institutions, including financial public institutions, outside the Seoul metropolitan area, financial authorities will deliberate by the end of this year on whether to additionally designate Jeonbuk as a financial center. The government’s relocation plan is expected to affect the outcome of the financial-center designation review, as Jeonbuk’s prospects for attracting financial institutions may depend on whether financial public institutions are relocated and where they are placed, decisions expected to be announced around next month.

According to relevant government agencies on October 15, the Financial Services Commission (FSC) plans to convene the Financial Hub Promotion Committee within this year to deliberate on whether to designate Jeonbuk as a financial center, based on evaluations by a research institution and an expert panel. The process will assess whether Jeonbuk should be added to Seoul and Busan, which are currently designated as financial centers. Jeonbuk Special Self-Governing Province submitted a financial-center development plan to the FSC in January, and the commission selected a research institution in May to conduct a related study.

The committee will focus on how many domestic and foreign financial institutions Jeonbuk could attract in the future. It will also assess the region’s potential to develop into an international financial center, the status of financial institutions and related industries, the ease of securing professional talent, and the feasibility of its development plan.

Accordingly, the government’s second plan to relocate public institutions outside the Seoul metropolitan area, expected to be announced next month, is likely to be a key factor in the review of Jeonbuk’s financial-center designation. This is because Jeonbuk’s prospects for attracting financial institutions could change depending on whether financial public institutions are relocated and where they are placed. If financial public institutions move to Jeonbuk, private financial companies that work with those institutions may follow and set up offices there. Conversely, if the institutions are placed in other regions, such as Busan, or remain in Seoul, the scale and outlook for attracting financial institutions that Jeonbuk anticipates could also change.

Financial authorities say that a decision to relocate public institutions is not an absolute criterion for designating a financial center, but it could affect assessments of the region’s potential to attract financial institutions. They do not, however, consider the FSC’s own relocation to Sejong, announced on October 13, to be relevant to the assessment of Jeonbuk’s financial-center designation.

Meanwhile, the government and ruling party have recently outlined plans to strengthen Seoul’s position as an economic and financial hub. At a press conference on September 18, President Lee Jae-myung proposed a vision of Seoul as the “economic capital” and Sejong as the “administrative capital,” forming “two capitals for the economy and administration.” Kim Min-seok, leader of the Democratic Party of Korea, also stressed on September 3 that Seoul should be developed into a global financial and cultural capital like New York. The vision was interpreted as aiming to concentrate administrative functions in Sejong while strengthening Seoul’s role as an economic and financial hub.

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