[Asia Economy Reporter Park Cheol-eung] Discussions on the additional relocation of public institutions to provinces are gaining momentum alongside the administrative capital relocation. The so-called 'Innovation City Season 2' primarily targets financial institutions such as KDB Industrial Bank. The Democratic Party of Korea has been advocating this since before the general election, and it is considered to have materialized following the emphasis on balanced development by Democratic Party floor leader Kim Tae-nyeon in his National Assembly speech on the 20th. Various regions have already entered into a competitive stance for attraction, and there are forecasts within political circles that a blueprint could emerge within the year. Among public institutions in the Seoul metropolitan area, 122 institutions are subject to relocation under the Special Act on Balanced National Development.
Jeon Jae-su, a member of the Democratic Party and chairman of the Busan City Party Committee, said in a phone interview with Asia Economy on the 22nd, "Representative Lee Hae-chan has expressed strong will, and many regions have high expectations, so Innovation City Season 2 has already become a fait accompli. Once the Prime Minister's Office and related government ministries draft an initial plan, it will be refined through consultations with the party, and a blueprint could come out as early as this year," he said.
Busan, along with Seoul, is designated as a financial hub. The Busan Economic Revival Citizens' Coalition stated in a press release on the 15th that the headquarters of Industrial Bank, Export-Import Bank, Korea Trade Insurance Corporation, and Suhyup Bank should be relocated to Busan.
Rep. Jeon said, "Relocation of financial public institutions is essential to develop Busan as a financial hub," adding, "Although I understand that labor unions of public institutions oppose this, it is inevitable from the perspective of balanced development." During the 20th National Assembly, Kim Hae-young, a Democratic Party Supreme Council member and former Busan district lawmaker, also proposed a bill last year for relocating the Industrial Bank and Export-Import Bank to Busan.
The Jeonbuk region, which President Moon Jae-in pledged to designate as the third financial hub during the presidential election, is also showing strong determination. Kim Yoon-duk, a Democratic Party lawmaker representing Jeonju, has emphasized the relocation of public institutions to provinces since the general election and is preparing related legislation. In a phone interview with Asia Economy, Rep. Kim said, "We are drafting an amendment to the Innovation City Act as a legal basis for additional relocation of public institutions and plan to propose it around next month," adding, "The relocation of financial public institutions should serve as a driving force to develop Jeonju and the Jeonbuk region."
There are also speculations that the Industrial Bank might relocate to Wonju, Gangwon Province. Gangwon Province recently completed a research project on the 'Innovation City Season 2 Attraction Strategy and Development Plan,' which started last year, and has shortlisted 22 institutions with high potential for relocation, preparing to attract them. Additionally, at the Democratic Party's Chungcheong region budget policy meeting held on the 21st, Daejeon Mayor Heo Tae-jung requested, "I ask for the party's considerable interest and support to complete Daejeon's Innovation City."
The ruling party views balanced national development as a timely issue and a fundamental solution to the Seoul metropolitan real estate problem. It is expected to be a matter of life and death, and the pace of promotion is likely to accelerate. On the 21st, President Moon Jae-in stated, "The Korean New Deal embodies the will to shift the axis of national development from the Seoul metropolitan area to regional centers." On the 20th, during a senior secretaries and aides meeting, he reportedly received a report and held discussions on the evaluation of Innovation City Phase 1 and the research results on the second relocation of public institutions from Kim Sa-yeol, chairman of the National Balanced Development Committee.
The so-called 'Parliamentary Group for Innovation and Enterprise City Development' held a press conference on the 21st, emphasizing the need for administrative authority for the Balanced Development Committee, corporate incentives, and tax benefits. Members attending this group included Song Ki-heon (Gangwon Wonju-eul), Lee Kwang-jae (Gangwon Wonju-gap), Kang Jun-hyun (Sejong-si-eul), Kim Sung-joo (Jeonbuk Jeonju-byeong), Seo Sam-seok (Jeonnam Yeongam-Muan-Shinan), Song Jae-ho (Jeju-si-gap), Shin Jeong-hoon (Jeonnam Naju-Hwasun), and Im Ho-seon (Jeungpyeong-Jincheon-Eumseong).
However, due to the potential for intense conflicts between regions, it is expected to be difficult to decide on relocation sites in a short period. A political insider said, "Discussions will start immediately, but it may take a long time to decide on the sites," adding, "There is a considerable possibility that it will be postponed until after the presidential election."
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