As discussions on the transfer of financial institutions to the provinces ramp up following the June 3 local elections, voices are emerging in many places saying the central headquarters of the National Federation of Fisheries Cooperatives (Suhyup) in Seoul should also move. With South Jeolla Province launching an all-out push to attract Suhyup, Suhyup appears to be responding in full force through the two major umbrella labor groups.
According to the financial sector on the 5th, the joint countermeasures committee (JCC) of the financial institutional sector of the two major umbrella labor groups, including the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions (KCTU), recently held a meeting with the Innovation City Development Promotion Team of the Ministry of Land, Infrastructure and Transport (MOLIT). The Innovation City Development Promotion Team is the lead division for the transfer of public institutions to the provinces, and it significantly increased its headcount before and after the local elections.
At the meeting, the JCC conveyed to the Ministry of Land, Infrastructure and Transport (MOLIT) its position that "financial institutions should be excluded from the second round of public institution transfers to the provinces. In particular, if policy banks or mutual finance institutions such as NongHyup and Suhyup are shaken by a transfer to the provinces, it will have a major impact on the government's productive finance policies."
The Ministry of Land, Infrastructure and Transport (MOLIT) proposed to the JCC, "Let's discuss support measures such as improving living conditions for institutions that transfer their headquarters to the provinces," but the JCC reportedly refused, saying, "Discussing support measures itself is tantamount to premising a transfer to the provinces."
Except for the Financial Services Commission, which is the subject of rumors about a move to Sejong, mutual finance institutions such as NongHyup and Suhyup are said to feel the greatest sense of crisis about a transfer to the provinces. Industrial Bank of Korea (IBK) was rumored to move to Daegu, but observers say it lost momentum after the ruling party candidate was defeated in the Daegu mayoral election. Korea Development Bank went through turmoil over whether to relocate to Busan during the Yoon Suk-yeol administration, but as candidates in the Busan mayoral race did not make headquarters transfer pledges, the relocation rumors subsided.
Amid this, South Jeolla Province launched a task force to attract public institutions and is concentrating administrative resources with the goal of attracting 40 institutions, including the National and Fisheries Cooperatives' central federations, the Korea District Heating Corporation (KDHC), and the Korea Environment Corporation (K-eco). South Jeolla Province is pushing to amend the law to transfer the headquarters of the National and Fisheries Cooperatives' central federations to South Jeolla and has met with the Prime Minister's Office and relevant ministries to propose the need for institutional improvements. Amendments to the NongHyup Act and the Suhyup Act have already been introduced and are pending in the National Assembly.
Suhyup is expressing strong opposition. A Suhyup labor union official said, "Of the roughly 1,000 Suhyup employees working in Seoul, excluding those who must remain in Seoul for administrative reasons, only about 200 could possibly transfer to the provinces," adding, "The National Federation of Fisheries Cooperatives shares its IT systems with Suhyup Bank, so if there is a transfer to the provinces, all IT equipment must also be moved, and the expense would be substantial. Considering the land purchase or construction costs for a new provincial headquarters building, at least several hundred billion won would be needed, making the plan far from feasible."