The government decided to relocate public institutions that have no unavoidable reason to remain in the greater Seoul area to the provinces. Newly relocating institutions will be clustered around existing innovation cities. The transfer of leading institutions will also begin in 2027 by renting private buildings before building new headquarters. However, the government did not disclose specific transfer targets or placement regions on this day.
The Ministry of Land, Infrastructure and Transport on the 3rd announced the "Principles and direction for the second transfer of public institutions to the provinces." The government said it will gather opinions from related ministries, public institutions, and labor unions and finalize the transfer plan in the fourth quarter of this year after deliberation and a decision by the Presidential Committee for Decentralization and Balanced Development.
The five principles presented by the government are: ◇ minimizing retention in the greater Seoul area ◇ concentrated placement centered on existing innovation cities ◇ linking with local universities and industries ◇ expanding self-sufficient living foundations ◇ speedy transfer.
The government will reexamine from scratch the standards for staying in the greater Seoul area that were applied during the first transfer of public institutions. As a rule, institutions without a clear reason to be in the greater Seoul area will be included as targets for transfer to the provinces.
The method of placing institutions will also change. Rather than dividing institutions by region as in the first transfer, institutions with related functions will be clustered around existing innovation cities. Cooperation with local corporations, universities, and research institutes will also be strengthened so that institutions' core work can connect with regionally specialized industries.
Specific transfer targets will be decided after review by the ministries overseeing each institution and discussions by the transfer task force of the Presidential Committee for Decentralization and Balanced Development. Placement regions will be determined by comprehensively considering the "five hubs, three specialties" balanced growth strategy, the industrial characteristics of existing innovation cities, and infrastructure such as transportation, education, and medical services.
The pace of transfer will also increase. The first transfer took more than seven years from the announcement of the plan to the actual transfer. This time, the government plans to move leading institutions first starting in 2027 by renting private buildings without waiting for new headquarters to be built.
Support for employees of transferring institutions will also be expanded. In addition to existing relocation and moving allowances, the government plans to introduce a long-distance preferential allowance of up to 200,000 won per month for two years, depending on transfer distance. Employees who transfer early will receive an early-transfer allowance of up to 500,000 won per month for two years. Measures to support housing stability and children's education and care will also be prepared with related ministries.
The Ministry of Land, Infrastructure and Transport (MOLIT) said that through the first transfer, conducted from 2005 to 2019, 150 public institutions and about 50,000 employees moved to the provinces. It assessed that about 70% of transferring employees settled with their families and that corporations and jobs increased around innovation cities.
On the other hand, dispersing institutions across multiple regions failed to achieve economies of scale, and linkage with regional industries was lacking. There were also limits to fundamentally changing the trend of concentration in the greater Seoul area.
Minister Kim Yun-duk of the Ministry of Land, Infrastructure and Transport (MOLIT) said, "We will raise the level of support compared with the first transfer and provide robust support to institutions that transfer farther and faster," adding, "We will communicate sufficiently with related institutions to craft a reasonable transfer plan."