The Korea Development Bank headquarters in Seoul (The Korea Herald file photo)
The state-run Korea Development Bank has decided to push for "a full relocation" of its headquarters from Seoul to Busan and submitted a plan to the country's financial regulator for approval, according to industry sources on Friday.
According to KDB's plan, the bank intends to retain a minimal workforce of approximately 100 employees in Seoul while transferring the entire headquarters to Busan.
Under the existing law, KDB is required to be located in Seoul.
In order to proceed with its relocation plan to Busan, the state-run bank has reported the proposal to the Financial Services Commission. This report seeks to bring about necessary changes to the law to accommodate the bank's envisioned move.
“Discussions are currently underway regarding the necessary revisions to related laws in order to facilitate the bank's planned relocation to Busan,” an FSC official said.
The KDB relocation was originally a pledge made by President Yoon Suk Yeol during his presidential campaign. It represents a significant move to decentralize economic and political power away from Seoul, with the aim of promoting the development and growth of cities like Busan, which is the second-most populous city after the capital.
“Yoon pledged to relocate the KDB, so the government is supportive of the relocation 100 percent,” Yun Jae-ok, the floor leader of the ruling People Power Party, said on July 21.
Meanwhile, KDB has said it would conduct a meeting with its employees to provide a comprehensive explanation of the move. The bank hopes that this meeting will address concerns, and potentially change the minds of those employees who object to the resettlement.
However, industry insiders anticipate that getting all employees on board will be a challenging task.
Many KDB employees are opposed to the transfer, saying it is a top-down decision that they were not consulted on, the bank's labor union said.
They also fear that it could lead to a significant brain drain and hurt its competitiveness.
“Despite spending 1 billion won ($780,000) on relocation consultations, there are currently no compelling reasons supporting the relocation of KDB,” an official from the state-owned bank’s labor union said.
The Korean Financial Industry Union also announced that it will organize a conference with reporters on Monday at KDB's headquarters in Seoul to voice their opposition and raise awareness about their concerns. It will provide detailed explanations as to why the relocation should not proceed and present the results of a survey.
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