[비즈한국] Jeonbuk State is once again challenging for the designation of a 'Third Financial Hub,' centered around the Jeonju Innovation City where the National Pension Service (NPS) is located, drawing significant market attention. Expectations have risen as major financial holdings such as KB, Shinhan, and Woori have announced plans to expand their asset management personnel and organizations. However, some point out that there is still a long way to go in terms of infrastructure development, and that regional finance has been left out of the conversation. With the Financial Services Commission (FSC) set to designate the financial hub following on-site inspections, all eyes are on whether Jeonbuk's vision will materialize.
Jeonbuk State accelerated its push for a third financial hub by announcing the 'Jeonbuk Financial Hub Development Plan' on October 31, 2025. Following the submission of the development plan to the FSC on January 29, Jeonbuk Governor Kim Kwan-young visited the commission on February 4 to request the designation from Chairman Lee Bok-hyun. The FSC is expected to announce its decision after reviewing Jeonbuk's plan and conducting on-site due diligence starting in June.
The designation of Jeonbuk as the third financial hub was a campaign promise under both the Moon Jae-in and Yoon Suk-yeol administrations but failed to materialize. The Lee Jae-myung administration has also put forward a pledge to 'create a Jeonbuk financial specialization city where young people gather,' and this time, prospects appear higher as the NPS and major financial groups are moving in tandem. Currently, three of the four major financial holdings (KB Kookmin, Shinhan, Hana, and Woori)—excluding Hana Financial Group—have announced plans for investment and infrastructure construction in Jeonbuk. The core of these plans for all three groups is to increase local personnel in the Jeonbuk region, focusing on the asset management sector.
Financial groups announced their plans to enter Jeonbuk following remarks made by President Lee Jae-myung during a Cabinet meeting. On December 30, 2025, President Lee pointed out, "How much has the NPS moving to Jeonju actually helped the local economy?" and mentioned providing incentives, such as prioritizing local asset management firms when the NPS allocates its assets.
KB Financial Group105560 announced in late January that it would build 'KB Financial Town' in Jeonju Innovation City, which will house approximately 250 employees from banking, securities, insurance, and asset management sectors. It will launch Jeonju offices for KB Securities and KB Asset Management, a regional smart center for KB Insurance, and a non-face-to-face counseling organization for Kookmin Bank. In February, it signed a tripartite MOU with Jeonbuk State and the NPS to 'create a financial ecosystem specialized in asset management and revitalize the local economy.'
Shinhan Financial Group's 'Shinhan Financial Hub Jeonbuk Innovation City' is similar to KB Financial Town. The goal is to gather capital market and asset management-related functions in Jeonbuk, cultivating the region as a capital market base by gradually increasing the number of employees working in the Jeonju area, such as those from Shinhan Bank, Securities, Asset Management, and Fund Partners, from around 130 to 300. To this end, it recently opened a Jeonju office for Shinhan Asset Management.
Woori Financial Group's strength lies in the fact that Woori Bank is the primary bank for the NPS. It plans to expand its 200-strong Jeonju workforce to 300. For this, it is establishing a Jeonju office for Woori Asset Management and a Jeonju sales office for its debt management affiliate, Woori Credit Information. Woori Credit Information will handle debt management for local affiliates and financial companies including Woori Bank and Woori Capital. Tongyang Life Insurance and ABL Life Insurance also plan to increase local personnel, primarily focusing on exclusive agents.
Hana Financial Group has no such plans and has not released an official statement regarding entering the Jeonbuk financial hub.
Jeonbuk State is putting all its efforts into the third financial hub designation. When Busan, the second financial hub, recently objected, calling it a "divisive policy," Governor Kim Kwan-young issued a rebuttal, stating, "Busan's maritime, digital, and derivative finance strategy and Jeonbuk's pension fund-based asset management specialization strategy are structurally different. We must approach this from the perspective of mutual complementarity and role sharing, rather than inciting regional conflict." A Jeonbuk State official said, "With the discussion on the second relocation of public institutions moving toward concentrating pension fund asset management functions to create a financial base, we view the creation of Jeonbuk's financial ecosystem positively."
However, while infrastructure is key to being designated a financial hub, progress has been slow. Jeonbuk State has been pushing for the construction of the Jeonbuk International Financial Center since 2015 to attract financial institutions ahead of the NPS Fund Management Headquarters' move to Jeonju in February 2017. While it aimed to attract private investment for the approximately 300 billion won project, it hit a snag due to profitability issues. Although an MOU was signed with a private investor in November 2023, construction has been delayed. Detailed plans for the groundbreaking have yet to be released.
A Jeonbuk State official stated, "After signing the MOU, progress slowed due to the economic downturn and profitability concerns, but the situation has changed since last year. We are actively consulting, judging that there is occupancy demand due to financial firms entering the market," adding, "We are also discussing a consortium-type agreement to speed up investment." In its recently submitted development plan, Jeonbuk State designated the Manseong District (3.59㎢) area of Jeonju Innovation City, where the NPS is located, as the financial hub.
Another issue is that local finance is absent from the discussion, even though the purpose of creating a financial hub is regional balanced development. JB Financial Group175330, which owns Jeonbuk Bank and Kwangju Bank, is a Jeonbuk-based firm, but it has not announced specific investment plans regarding the financial hub. Although the third financial hub strategy touts a focus on asset management, JB Asset Management and JB Capital maintain their bases in Seoul. Only the holding company and Jeonbuk Bank are located in the JB Financial Jeonju headquarters building.
A JB Financial official replied, "The holding company and Jeonbuk Bank are based and operating in Jeonbuk, and if there are necessary matters regarding the financial hub, we will inform the market after internal review," adding, "We are striving to develop together with the region by expanding social contributions through Jeonbuk Bank."