[Column] Does the 'Korea Development Bank's Relocation to Busan' Serve the National Interest?

[Asia Economy Reporter Bu Aeri] On the 28th, at the headquarters of the Korea Development Bank (KDB) in Yeouido, a press conference condemning the 'KDB Busan Relocation' was held by the KDB labor union. The eyes of the KDB employees gathered ahead of the board meeting on the 29th were filled with anger. The employees shouted at the top of their lungs, "Withdraw the KDB relocation" and "Condemn the Yoon Seok-yeol government." The usually quiet KDB has not had a peaceful day since Chairman Kang Seok-hoon took office. Even on the morning of the 30th, when a severe cold wave hit, hundreds of KDB employees continued unprecedented protests. The board's decision the previous day only fueled their anger further. They are unconvinced that KDB’s move to Busan is a decision that aligns with national interests amid the economic crisis.

The KDB board approved an organizational restructuring plan the day before, focusing on "expanding the Southeast region's business organization." The plan includes renaming the Small and Medium Enterprise Division, which oversees domestic branch operations, to the Regional Growth Division and relocating it to Busan, as well as establishing a Southeast Investment Finance Center. The problem is that this department moving to Busan oversees branches, half of which are located in the Seoul metropolitan area. A KDB employee said, "We need to continuously coordinate funding and other matters with the branches, but if we move to Busan, it is questionable whether this will proceed smoothly."

Moreover, KDB’s relocation could disrupt the local financial ecosystem. Under the pretext of "regional community development," if KDB moves to Busan, it is likely to intentionally increase funding supply to achieve initial performance, and companies in the Busan area may shift their transactions to KDB. Local banks such as Busan Bank could face difficulties in raising funds due to KDB’s presence.

Chairman Kang previously stated at a press conference marking his 100th day in office, "The relocation of KDB headquarters to Busan is a presidential campaign pledge, so it is my responsibility to carry it out well," and has been pushing forward with the Busan move without hesitation. However, the government and the president’s greatest responsibility is not to blindly fulfill "campaign pledges" made for votes in elections but to properly judge whether they align with national interests when making policy decisions. KDB employees shouted, "The relocation of KDB will cause an economic crisis." While it may not lead to an economic crisis, there is doubt about whether it aligns with national interests.