KDB Industrial Bank Busan Relocation Meeting Held
Ministry of Land, Infrastructure and Transport: "KDB to be Designated as 'Busan Relocated Public Institution' by End of April"
Financial Services Commission Chairman Kim Ju-hyun stated regarding the relocation of the Korea Development Bank (KDB) to Busan, "I believe two efforts are necessary to obtain policy approval amid the blessings of all citizens, as the KDB holds great national significance." He added, "First, the Industrial Bank Act must be amended to keep the KDB headquarters in Seoul, and secondly, a consensus should be formed through smooth labor-management consultations related to the relocation efforts."
Chairman Kim made these remarks on the morning of the 14th at a meeting on the KDB Busan relocation held at the National Assembly Members' Office Building, saying, "Currently, the KDB is conducting consulting to determine the necessity and direction of the regional relocation. Once the results are out, we will swiftly prepare a concrete relocation plan after consultations with employees and stakeholders, so we ask the National Assembly to actively support this." The meeting was attended by Busan district lawmakers from the People Power Party and government officials.
Lee Won-jae, the 2nd Vice Minister of the Ministry of Land, Infrastructure and Transport, said, "We plan to request a review from the National Balanced Development Committee today to designate the KDB as a relocating public institution," adding, "Once the review is completed, we aim to officially designate and announce the KDB as a Busan relocation public institution by the end of April. Since the KDB Busan relocation is a promise to the people included in the national agenda, we will actively promote it without delay."
Kang Seok-hoon, President of the KDB, also said, "The biggest task is for the National Assembly to form a consensus and amend the legal provisions," adding, "The KDB is preparing consulting to strengthen policy finance capabilities in line with the Busan relocation, which is scheduled to be completed by the end of May."
Busan district lawmakers also expressed their commitment to actively promote the KDB relocation. Lawmaker Jeon Bong-min stated, "The Democratic Party and the KDB labor union claim that proceeding with the Busan relocation before amending the Industrial Bank Act’s Seoul headquarters provision is illegal, but this is clearly a false claim," explaining, "In the case of the Korea Credit Guarantee Fund, which relocated to Daegu under the first public institution regional relocation plan in July 2005, the law was amended in January 2015 after the relocation was completed."
Lawmaker Kim Hee-gon said, "There was severe conflict between labor and management at the KDB, so the Prime Minister’s Office was asked to act as a control tower, coordinating Seoul City, Busan City, the Financial Services Commission, and the Ministry of Land, Infrastructure and Transport, and the Prime Minister agreed to do so," adding, "It seems that the KDB, Financial Services Commission, and Ministry of Land, Infrastructure and Transport are progressing well, so I feel somewhat reassured today."
Lawmaker Cho Kyung-tae emphasized, "It is truly regrettable that the labor union is trying to undermine the spirit of national balanced development and the constitutional spirit," adding, "The President’s pledge to relocate the KDB to Busan must be upheld."
Ruling party lawmakers from Busan reportedly began reviewing a bill to amend the Industrial Bank Act proposed by Democratic Party lawmaker Song Ki-heon after the Democratic Party opposed the KDB Busan relocation. Song’s amendment replaces Article 4, Paragraph 1 of the current Industrial Bank Act, which states, "The headquarters of the KDB shall be located in Seoul Special City," with "The location of the KDB headquarters shall be determined by the articles of incorporation," allowing the headquarters to be relocated. However, there is a risk that the Busan relocation may be uncertain. Similarly, Democratic Party lawmaker Kim Du-gwan’s amendment to stipulate that "the headquarters of national policy banks such as the KDB shall be located in the Republic of Korea" faces similar circumstances. Due to strong opposition within the Democratic Party, it is currently expected to be difficult for People Power Party lawmaker Seo Byung-soo’s amendment to firmly designate the KDB headquarters in Busan to pass.
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