Policy Debate on the 29th: "Is the Relocation of Korea Development Bank Okay as It Is?"
Directions Suggested for Infrastructure Improvement to Promote Regional Balanced Development
Discussions Include Views That Relocation to Busan Is Inappropriate
[Asia Economy Reporter Oh Ju-yeon] A forum to review the current status and explore the role of the National Assembly regarding the relocation of the Korea Development Bank (KDB) to Busan was held on the 29th.
On the day, Park Sung-jun, a member of the Democratic Party of Korea, held a policy forum titled "Is the KDB Relocation Okay as It Is?" at the National Assembly Members' Office Building, Seminar Room 2.
The forum was attended by Kim Byung-wook, senior deputy chairman of the Democratic Party Policy Committee; Oh Ki-hyung, a member of the National Assembly’s Political Affairs Committee from the Democratic Party; independent lawmaker Yang Jung-sook; Democratic Party members Lim Oh-kyung and Kang Sun-woo; and Park Hong-bae, chairman of the National Financial Industry Labor Union. In their congratulatory remarks, they expressed agreement on the need to resolve the recent controversies surrounding the KDB relocation issue. The forum was chaired by Lim Seung-bin, professor of Public Administration at Myongji University, with about 50 participants including KDB employees and financial labor union members.
Lee Seok-ran, director of the Industrial Finance Division at the Financial Services Commission, gave the first presentation on the topic "Direction of the KDB Relocation." He stated, "We agree that extensive review and consultation are necessary to promote the KDB relocation," adding, "The Financial Services Commission and the government will continuously persuade not only KDB employees but also work towards amending the Korea Development Bank Act."
Next, Kang Da-yeon, research fellow at the Financial Economy Research Institute, presented on "Evaluation of Financial Hub Policies and Future Policy Suggestions." Kang argued, "Busan lacks a specialized strategy, making it insufficient to serve as a secondary financial hub," and emphasized, "Yeouido should be designated as a financial hub special zone to strengthen global capabilities through national policy banks." She also stated, "Operational funds such as the National Pension Service Fund Management Headquarters, which have relocated to local areas, need to be re-relocated to Seoul for cooperation with overseas institutions."
The third presentation was delivered by Lee Min-hwan, professor of Global Finance at Inha University, on the topic "Balanced Regional Development: Is Relocation to Local Areas the Best Option?" Professor Lee questioned, "The biggest problem in Korea now is the overconcentration in the metropolitan area, and it is doubtful whether relocating public institutions to local areas helps balanced regional development and alleviates congestion." He suggested, "For balanced regional development, the key is to improve infrastructure and create livable cities, and to establish a cyclical structure through the linkage of local businesses, local governments, and regional universities."
Lastly, Jo Yoon-seung, chairman of the Korea Development Bank branch of the Financial Labor Union, presented on "Misunderstandings and Truths about the KDB." He pointed out, "To fulfill the KDB’s main function of policy finance, profitability must be realized," and criticized, "All public institutions relocated to local areas, such as the Korea Asset Management Corporation and the National Pension Service Fund Management Headquarters, have experienced profit declines or deficits." Jo warned, "If the KDB relocates to Busan, profits will decline, and consequently, the competitiveness of policy finance will fall, leading to failure," adding, "Telling the KDB to move to Busan means giving up on policy finance."
Park Sung-jun, who hosted the forum, said, "While sufficient opinion gathering and validity checks are necessary to implement national policies, the KDB relocation to Busan has only caused internal conflicts within the bank," and questioned, "It is doubtful whether the Yoon Seok-yeol administration has the will to actively persuade the National Assembly and KDB employees."
Park continued, "Before planning the KDB relocation, it is necessary to listen to the voices of various stakeholders regarding the appropriateness of relocating to Busan and to seek direction through sufficient discussion and debate," emphasizing, "The National Assembly will also explore its role in policies and alternatives and listen closely to the field."
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