Ministry of SMEs and Startups 'Sejong Relocation' Emerges... Rising Opposition to Relocation from Daejeon

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The relocation of the Ministry of SMEs and Startups (hereinafter referred to as the Ministry) to Sejong has surfaced. In reality, there are still many hurdles to overcome for the Ministry to move to Sejong. However, in Daejeon, where the Ministry has long been rooted, voices opposing the move to Sejong are already strong. Behind the opposition lies a sense of betrayal toward the institution.

◆ Ministry of SMEs and Startups officially expresses hope to relocate to Sejong = According to Daejeon City and the Ministry on the 27th, the Ministry submitted a "Letter of Intent to Relocate to Sejong" to the Ministry of the Interior and Safety on the 16th, and just a week later, on the 23rd, officially announced the institution’s plan to move to Sejong through a press release.

Since its promotion from the Small and Medium Business Administration to the current Ministry of SMEs and Startups in 2017, the institution’s scope has expanded, resulting in a shortage of office space. The Ministry’s rationale for relocating to Sejong is that, with many other government ministries at the vice-ministerial level having already moved to Sejong, it is reasonable for the Ministry to relocate there as well to facilitate smooth consultations.

The Ministry of the Interior and Safety will hold a public hearing to gather opinions from various sectors following the submission of the letter of intent by the Ministry. It will also consult with heads of related central administrative agencies. If the decision is made to relocate the Ministry to Sejong through this process, final approval from the President is reportedly required.

◆ Boiling local community, successive expressions of opposition = It is clear that there are many obstacles for the Ministry to relocate to Sejong. However, in Daejeon, just the Ministry’s hope to move to Sejong has sparked strong opposition.

First, Daejeon City opposed the Ministry’s relocation to Sejong, arguing that ▲ relocating public institutions located outside the metropolitan area to Sejong contradicts the original purpose of Sejong City’s establishment, which was to alleviate metropolitan area congestion and promote national balanced development ▲ it violates the relocation institution selection principle set in the "Plan for the Relocation of Central Administrative Agencies" prepared in 2005 for the establishment of Sejong City, which excludes the Government Daejeon Complex and institutions located outside the metropolitan area ▲ allowing the relocation of public institutions outside the metropolitan area could trigger a competition to attract public institutions and escalate conflicts between regions.

In addition, local political circles and civic groups have joined in fueling opposition to the Ministry’s move to Sejong. Recently, the Democratic Party’s Daejeon City branch conveyed opinions to the Ministry of the Interior and Safety expressing local public opinion (opposition to relocation) and the unfairness of the relocation review. The Daejeon City Council condemned the Ministry’s relocation plan to Sejong in a statement.

Moreover, civic groups such as the Daejeon Participatory Citizenship Solidarity criticized in a statement that "At a time when Daejeon and Sejong are considering directions for joint development and cooperation, the Ministry’s letter of intent to relocate to Sejong submitted to the Ministry of the Interior and Safety only stirs up conflicts between regions."

◆ ‘Ministry relocation’ brings apparent losses and inner sense of loss = In the local community, the Ministry’s relocation to Sejong is perceived as both an economic (apparent) loss and an emotional (inner) sense of loss.

The former raises concerns that the relocation of the Ministry to Sejong could accelerate the departure of its affiliated institutions from the region. In fact, some affiliated institutions of the Ministry have already chosen to move to Sejong or have plans to do so.

First, the Korea Institute of Startup & Entrepreneurship Development is scheduled to move from near the Government Daejeon Complex in Dunsan-dong, Seo-gu, Daejeon, to the Sejong Knowledge Industry Center in December this year, with the building reportedly already completed.

Next, the Small and Medium Business Technology Information Promotion Agency is scheduled to relocate to Sejong in March next year, and the Korea Credit Guarantee Fund Central Association is also expected to move its base to Sejong around 2022. Ultimately, the only affiliated institution remaining in Daejeon would be the Small Enterprise and Market Service, and if the Ministry moves to Sejong, even its continued presence in Daejeon is uncertain, according to local consensus.

Beyond the economic losses from the relocation of the Ministry and its affiliated institutions, the local community also senses emotional loss. This is because a government institution that has taken root and grown in the local community by being housed in the Government Daejeon Complex is now pushing for a relocation to Sejong, which is adjacent to Daejeon, without clear justification.

Above all, since Daejeon was designated as an innovation city not long ago, the Ministry’s submission of a letter of intent to relocate to Sejong to the Ministry of the Interior and Safety has sparked grumbling in the local community, with suspicions of political bargaining.

Meanwhile, the Ministry of SMEs and Startups was launched in 1996 as the Small and Medium Business Administration (an external agency of the Ministry of Trade, Industry and Energy) and moved into the Government Daejeon Complex in 1998. It was promoted from the Small and Medium Business Administration to the current Ministry in July 2017.