[비즈한국] As the early presidential election race begins, discussions regarding the relocation of the KDB (Korea Development Bank) headquarters to Busan are reigniting. Former President Yoon Suk-yeol pushed for the relocation of the KDB headquarters to Busan during his term, but failed to overcome the hurdle of the National Assembly. Ahead of the presidential election, several candidates have once again included the relocation of the KDB headquarters as a campaign pledge. Lee Jae-myung, the candidate for the Democratic Party of Korea, who is currently leading in various polls, has not yet issued a position regarding the KDB headquarters relocation.
Candidate Lee Jae-myung recently announced a pledge to relocate the Ministry of Oceans and Fisheries to Busan. However, he has refrained from commenting on KDB. In response, Busan Mayor Park Heong-joon pointed out on the 18th, "To make the Busan-Ulsan-Gyeongnam region the maritime capital of South Korea and to pioneer Arctic shipping routes, the enactment of the Special Act on Global Hub Cities and the relocation of KDB to Busan are essential prerequisites."
Other Democratic Party candidates, Kim Kyung-soo and Kim Dong-yeon, have pledged to relocate the KDB headquarters to Busan. However, the likelihood of Kim Kyung-soo or Kim Dong-yeon being elected as the final Democratic Party candidate is low. Candidate Lee Jae-myung received an overwhelming 88.15% of the vote in the Chungcheong regional primary on the 19th, followed by a massive 90.81% in the Yeongnam regional primary on the 20th. The Democratic Party is scheduled to select its final candidate on the 27th.
In the People Power Party, candidates Han Dong-hoon and Ahn Cheol-soo have pledged to relocate KDB to Busan. During a book concert in Busan last March, Han Dong-hoon stated, "The enactment of the Special Act on Global Hub Cities and the relocation of KDB to Busan could be the starting point for solving many of Busan's problems." Candidate Ahn Cheol-soo argued on the 14th at the Busan City Council briefing room, "To advance into a transnational maritime economic zone in the Busan-Ulsan-Gyeongnam region, Busan must become the center of maritime finance through the relocation of KDB and the attraction of overseas financial firms."
To relocate the KDB headquarters, the law must be amended. The current Korea Development Bank Act states, "The Korea Development Bank shall have its headquarters in Seoul." Amending the law requires a majority attendance of incumbent lawmakers and a majority vote from those present. Currently, the Democratic Party holds 170 seats in the National Assembly, while the People Power Party holds 108. If the Democratic Party decides to do so, it can pass an amendment to the Korea Development Bank Act unilaterally. Conversely, if the Democratic Party opposes it, the amendment is impossible.
For the next president to push for the relocation of the KDB headquarters, cooperation from the Democratic Party is necessary. The Democratic Party, including candidate Lee Jae-myung, has remained passive toward the relocation of the KDB headquarters. At times, they have even shown an attitude opposing the move. In March 2023, Democratic Party lawmaker Lee Su-jin, in her capacity as floor spokesperson, stated, "To push for the relocation (of KDB) recklessly without parliamentary consent just because of the president's word is nothing short of thuggish," and added, "The Yoon Suk-yeol administration should present the legitimacy and rational basis for the Busan relocation and obtain the consent of the people and the National Assembly through the politics of persuasion and compromise."
Because of this, there is an assessment that if candidate Lee Jae-myung is elected president, the KDB headquarters relocation plan pushed by former President Yoon Suk-yeol is highly likely to be scrapped. Political circles in Busan are repeatedly demanding that candidate Lee Jae-myung clarify his position on the relocation of the KDB headquarters. As the candidate has remained silent so far, it is interpreted that he has no intention of proceeding with the relocation.
If candidates Han Dong-hoon or Ahn Cheol-soo are elected president, the situation becomes more complicated. They would need the Democratic Party's cooperation to successfully relocate the KDB headquarters. However, given the relationship between the two sides, negotiations are unlikely to be easy. The current term of National Assembly members runs until May 2028. If the Democratic Party maintains a majority of seats in the 2028 general election, the relocation of the KDB headquarters will become even more difficult.
The internal atmosphere of the bank could also be a variable. When KDB pushed for the relocation of its headquarters during the Yoon Suk-yeol administration, a significant number of employees resigned. The number of employees leaving KDB rose from 46 in 2021 to 98 in 2022 and 87 in 2023. Perhaps due to the slow progress of the relocation work, the number of resignations decreased to 51 in 2024. If the next government resumes discussions on relocating the headquarters, it could lead to another wave of resignations.
The Korean Financial Industry Union KDB branch (KDB Labor Union) has opposed the relocation of the headquarters since the Yoon Suk-yeol administration. If the KDB union responds to relocation pledges with actions like general strikes, the economic and political sectors will inevitably feel the burden. The KDB union is publicly supporting candidate Lee Jae-myung, likely because he did not include the headquarters relocation in his campaign pledges.
In a statement on the 18th, the KDB union said, "Candidate Lee Jae-myung has presented a strategy and vision to make Busan the center of a maritime powerhouse. Unlike other candidates who parrot the relocation of KDB without any deep thought or review just to win regional votes, this is the result of considering what industries are truly needed in the region and what industries can leverage the region's strengths." They added, "We actively support candidate Lee Jae-myung's position and will do our best to support the shipping and logistics industries in Busan."
KDB had been preparing for the relocation of its headquarters on its own, such as by establishing the Southern Region Investment Finance Headquarters in Busan last year. However, no additional work has been carried out this year. A KDB official stated, "We cannot proceed with the next steps without the law being amended."