[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 its full-scale work. Out of 850 ministry employees, 693, excluding those on leave or secondment, started working in Busan. The city is enthusiastic about the new Busan era of the ministry. The commercial district around Dong-gu, where the government office is located, has been revitalized, and the number of applications from civil servants in other ministries who wish to work in Busan exceeded expectations. Employees also received extraordinary benefits exceeding 40 million won, including government housing, resettlement allowances, and support for education, childcare, and housing costs.

The relocation of the ministry is undoubtedly a welcome change for Busan. However, it is necessary to objectively assess whether this change is fundamentally transforming the city. Although the number of civil servants has increased, young people continue to leave. The concerns of young people in Busan are not complicated. They can be summed up as, "If only there were decent jobs, I would like to stay in Busan." The city has good transportation infrastructure, the sea is nearby, and life is less intense than in Seoul. Accessibility to Gimhae Airport and the cultural attractions of Gwangalli, Nampo-dong, and Seomyeon remain appealing.

The problem is the lack of quality jobs, and even when such jobs exist, wages and growth potential are unsatisfactory. This is evident from the Busan Chamber of Commerce and Industry's survey. As of 2024, only 28 Busan-based companies were included among the nation's top 1,000 companies by sales, a decrease of three from 31 the previous year. No new companies entered the list, and three dropped out. Of these three, two left due to relocating their headquarters outside the region, and one fell off the list due to poor business performance. Busan Bank ranked first in sales 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 company made it into the national top 100 this year.

It is unrealistic to expect young people to stay in a city where companies are leaving. According to a Busan MBC public opinion poll, optimism about the Busan economy was relatively higher among people in their 40s, but pessimism was highest among young people aged 18 to 29. This indicates that the generation expected to support the city's future is the most pessimistic.

The statistics are even starker. 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, fell 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 number of students is also declining. The number of elementary, middle, and high school students in Busan exceeded 300,000 in 2021 but fell below 290,000 in 2023, and it is projected to drop to the 230,000 range by 2030. Pukyong National University and Korea Maritime & Ocean University, both specializing in maritime industries, failed to be selected as 'Glocal Universities.'

Ultimately, decent jobs come from companies. There are clear limits to what can be achieved through the relocation of public institutions alone. While Busan hopes to attract 11 public institutions, what is more important is attracting and retaining corporate headquarters. SK Shipping and H-Line Shipping have already decided to relocate to Busan. The two companies have about 2,500 employees, three times the size of the ministry's workforce. The relocation of HMM, in which the government holds over a 70% stake, is facing union opposition, but if it becomes a reality, it is expected to generate 1.3 trillion won in production and create 4,570 jobs.

Busan is often called the "city of old men and the sea." Although the expression is uncomfortable, it cannot be entirely denied. What young people want is not a "city where you can live looking at the sea," but a "city where you can make a living from the sea." The relocation of the ministry is only the starting line. If the relocation of maritime public institutions, the attraction of companies from outside the region, and policy support to prevent existing companies from leaving are pursued together, Busan's economic status will rise again, and young people will no longer feel the need to leave.