[AK View] Shedding the "Old Men and the Sea" Label

Busan Excited by Ministry's Opening Ceremony... Local Businesses Also Revitalized
A Welcome Change, but Young People Still Leaving Due to Lack of Quality Jobs
Beyond Public Institution Relocation, More Efforts Needed to Attract Companies

Kyung Ho Lee, Head of Issue & Trend Team

The Ministry of Oceans and Fisheries, which relocated to Busan, held its official opening ceremony on the 23rd and began full-scale operations. Out of 850 ministry employees, 693, excluding those on leave or secondment, have started work in Busan. The city is abuzz with the start of the ministry's Busan era. The business district in Dong-gu, where the new government building is located, has been revitalized, and there were more applications than expected from civil servants in other ministries expressing a desire to work in Busan. Employees also received generous benefits exceeding 40 million won, including the provision of official residences, relocation settlement allowances, and support for education, childcare, and housing costs.

The relocation of the ministry is certainly a welcome change for Busan. However, it is necessary to objectively assess whether this change is truly transforming the city’s underlying structure. While the number of civil servants has increased, young people continue to leave. The concerns of Busan’s youth are not complicated. Their sentiment can be summed up as, "If there are decent jobs, I want to stay in Busan." The city boasts good transportation infrastructure, proximity to the sea, and a less dense lifestyle compared to Seoul. Accessibility to Gimhae Airport and the cultural attractions of Gwangalli, Nampo-dong, and Seomyeon remain intact.

The problem is the lack of quality jobs, and even when such jobs exist, wages and growth prospects are unsatisfactory. This is evident from a survey by the Busan Chamber of Commerce and Industry. Based on 2024 revenue, the number of Busan-based companies included among the nation’s top 1,000 companies was 28, a decrease of three from 31 the previous year. No new companies entered the list, and three companies dropped out. Of these, two left due to their headquarters relocating outside the city, while the remaining one was pushed out of the top 1,000 due to poor business performance. Busan Bank ranked first among Busan companies for the second consecutive year, but its national ranking fell from 111th in 2023 to 119th in 2024, an eight-place drop. Once again, no Busan-based company made it into the nation’s top 100 companies this year.

Expecting young people to remain in a city where companies are leaving is unrealistic. According to a Busan MBC public opinion survey, optimism about Busan’s economy improving was relatively high among those in their 40s, but the most pessimistic outlook-believing the economy would worsen-was found among young people aged 18 to 29. This means the generation that will support the city’s future is the most pessimistic about it.

The statistics are even more direct. Over the four years before and after the COVID-19 pandemic, 28,036 young people aged 20 to 39 left Busan. The number of employed people in their 20s, which averaged between 210,000 and 220,000 per quarter last year, dropped below 200,000 this year. In November alone, the number of employed people in their 20s decreased by 19,000 (8.2%) compared to the previous year. The student population is also declining. The number of elementary, middle, and high school students in Busan surpassed 300,000 in 2021 but fell below 290,000 in 2023, and projections suggest it will decrease to the 230,000 range by 2030. Pukyong National University and Korea Maritime and Ocean University, both specializing in maritime studies, failed to be selected as 'Glocal Universities.'

Ultimately, decent jobs are created by businesses. The limitations of relying solely on public sector relocations are clear. While Busan hopes to attract 11 public institutions, what is even more critical is attracting and retaining company headquarters. SK Shipping and H-Line Shipping have already decided to move to Busan. The combined workforce of these two companies is about 2,500, three times the size of the ministry’s staff. The relocation of HMM, in which the government holds more than a 70% stake, is facing union opposition, but if realized, it is expected to generate 1.3 trillion won in production and create 4,570 jobs.

Busan is often referred to as the "city of old people and the sea." While this may be an uncomfortable label, it cannot be entirely denied. What young people want is not simply "a city where you can live by the sea," but "a city where you can make a living from the sea." The relocation of the ministry is only a starting point. If the relocation of maritime public institutions, the attraction of companies from outside the region, and policy support to prevent the departure of existing companies are pursued together, Busan’s economic stature will rise again, and young people will no longer feel the need to leave.