The Korean Financial Industry Union said on the 14th that the government's plan to relocate the Financial Services Commission to Sejong is "a policy that damages the nation's financial competitiveness," demanding its immediate withdrawal.
Yoon Seok-gu, chairman of the union, said in a statement that the government "has cited efficiency in state administration as its justification, but it is questionable whether it gave sufficient consideration to the distinctive nature of the financial industry and the impact on the national economy." The government announced a day earlier that it would move the FSC to Sejong in the second half of next year.
Citing the 1997 foreign exchange crisis and the 2008 financial crisis, the union stressed that financial policy and supervision can function properly only when they are organically linked to financial markets. "Is it really a reasonable decision to separate the control tower of financial policy, where every minute counts, from the financial front line, on the grounds of improving efficiency between government ministries?" Yoon said. "They are trying to damage the national financial competitiveness built up over decades with thinking based on administrative convenience." He also criticized the plan as conflicting with President Lee Jae-myung's pledge to make Seoul the country's "economic capital."
The union also demanded a halt to discussions on relocating the headquarters of state-affiliated financial institutions, including state-run banks, Nonghyup Bank and the Korean Federation of Community Credit Cooperatives. "The government should not commit the folly of grasping for small gains at the cost of great losses," Yoon said. "If it forces through the FSC's move to Sejong and pushes ahead with relocating financial institutions to provincial areas, the union will fight to the end with the strength of 100,000 workers."
Private financial firms are indeed concerned about the added workload and costs. With the FSC currently housed in the Government Complex Seoul in Gwanghwamun, consultations have been relatively easy, but once it moves to Sejong, frequent business trips for various meetings and briefings will be unavoidable.
The biggest change is expected for government-affairs teams, which will have to shuttle between the FSC and the Financial Supervisory Service in Seoul's Yeouido district to discuss financial policy and pending issues. Some financial companies are considering setting up local offices in Sejong and stationing some staff there, given the need for workspace. A government-affairs official at a commercial bank said, "It looks like we will have to visit Sejong at least one day a week," adding, "We are also looking at the option of assigning government-affairs staff to local branches."
Concerns about staff departures are also significant. The number of employees leaving financial public institutions, once called dream workplaces, has shown no sign of declining. From January through September this year, 57 employees voluntarily left the FSS, 86 left the Industrial Bank of Korea and 21 left the Export-Import Bank of Korea, for a total of 164. Departures are continuing, particularly among those with less than 10 years of service, as the gap in pay and benefits with private financial firms widens and the risk of provincial relocation adds to the pressure.