[비즈한국] Will the headquarters of the Korea Development Bank (KDB) move to Busan? As the impeachment process gains momentum following the declaration of emergency martial law, there is a growing consensus that KDB's relocation to Busan has become impossible under the Yoon Suk Yeol administration. However, an early presidential election is expected to be a key variable. Observers suggest that the ruling party will likely use the KDB relocation card again to target the PK (Busan-Gyeongnam) region, and that even the opposition party (Democratic Party of Korea), which historically has weaker support in this area, may find it difficult to oppose the move.
Changed Atmosphere After Martial Law
Until the emergency martial law incident, KDB had continued its efforts to relocate to Busan. Last September, the KDB board of directors carried out an organizational restructuring to strengthen sales organizations in the southern region for building new growth engines, expand global financial cooperation, and reinforce the management of investment stocks. The main focus was the establishment of a Southern Region Investment Finance Headquarters in Busan and the expansion of relevant personnel, citing the need to boost economic vitality by supporting companies and industries in the southern region.
It is said that the Presidential Office, led by President Yoon, repeatedly pressured financial authorities to move forward, asking why the relocation to Busan was not being implemented and ordering them to persuade the National Assembly. In fact, Financial Services Commission (FSC) Chairman Kim Byung-hwan stated at a press conference in October that he would focus on passing the amendment to the Korea Development Bank Act for the relocation to Busan through the National Assembly. Chairman Kim noted at the time, "The law related to the KDB's relocation to Busan will be discussed, and I will make every effort to ensure it passes in this parliamentary session."
However, as the impeachment process gained rapid momentum following the emergency martial law incident centered on President Yoon, observers say that the KDB's relocation to Busan has effectively come to a halt. The argument is that the justification for the relocation, a major campaign promise of President Yoon, has evaporated. A financial authority official stated, "Since the martial law crisis, the KDB Act amendment is not being discussed in the current National Assembly, where the Democratic Party is the majority party," adding, "Under the Yoon Suk Yeol administration, the relocation of KDB is effectively off the table."
Chairman Kang Seok-hoon's 'Relocation' Remarks Disappear
The shift in tone from KDB Chairman Kang Seok-hoon is also noteworthy. Attending the 'Briefing on KDB's Key Tasks for Revitalizing the Regional Economy' held at the Busan Chamber of Commerce and Industry on the 18th, Chairman Kang emphasized that "the southeastern region must be made into a new growth axis for South Korea," but made no mention of the relocation of the headquarters to Busan. This is a change from his previous visits to Busan, where he consistently mentioned the necessity of moving the KDB headquarters to the city.
However, officials inside and outside the financial authorities suggest that whether the plan is "fully scrapped" will depend on the phase of the early presidential election. Depending on the Constitutional Court’s ruling on impeachment, an early presidential election could be held in the first half of next year, and the possibility that KDB's relocation to Busan will be included in the campaign promises of leading candidates from both ruling and opposition parties cannot be ruled out. Seoul Mayor Oh Se-hoon, a prominent potential candidate, expressed his opposition to the move, stating, "The inherent function of KDB is to provide loans to ensure the smooth operation of industries, and many of those companies have their headquarters in Seoul."
Nevertheless, some observe that since the relocation of the KDB headquarters to Busan has been a consistent campaign pledge for the ruling party since President Yoon took office, they will likely use it to target the PK region again once a presidential candidate is selected.
The opposition party clearly has "voices of opposition" within its ranks. A prominent opponent is Democratic Party Supreme Council member Kim Min-seok, who represents the Yeongdeungpo-eul district in Seoul. He has consistently stated his opposition to the relocation on his social media and at official events. However, there are predictions that the Democratic Party might change its stance at the party level to court the PK region ahead of the presidential election.
The aforementioned financial authority official predicted, "One thing is certain: while relocation has become difficult under the Yoon Suk Yeol administration, the KDB relocation card could reappear if an early presidential election is held," adding, "When the next presidential election is held, who is chosen as the ruling and opposition candidates, and how KDB is included in their pledges will determine whether the 'relocation' actually happens."