[비즈한국] Kim Boo-kyum, the Democratic Party of Korea's candidate for mayor of Daegu, is drawing attention with his campaign pledge to relocate the headquarters of the Industrial Bank of Korea (IBK)024110 to Daegu. The headquarters of IBK is currently located in Euljiro 2-ga, Jung-gu, Seoul. Relocating would require an amendment to the relevant law. Given the current number of seats in the National Assembly, if the Democratic Party throws its weight behind candidate Kim, passing such an amendment would not be difficult. However, critics point out a self-contradiction, as the Democratic Party previously opposed the relocation of the Korea Development Bank (KDB) headquarters.
One of Kim Boo-kyum's key pledges is to move the IBK headquarters to Daegu. Candidate Kim has emphasized the necessity of this relocation in several media interviews. In an interview with the Seoul Shinmun on April 9, he stated, "There are about 3,000 small and medium-sized enterprises (SMEs) with 10 or more employees in Daegu," adding, "Since IBK is a financial institution created to help SMEs, I believe there is justification for the relocation."
The issue lies in feasibility. Moving the IBK headquarters requires a legal amendment. The Industrial Bank of Korea Act explicitly states, "The headquarters of IBK shall be located in Seoul." The current composition of the National Assembly is: 160 seats for the Democratic Party, 107 for the People Power Party, 12 for the Rebuilding Korea Party, 4 for the Progressive Party, 3 for the Reform Party, 1 for the Basic Income Party, 1 for the Social Democratic Party, and 7 independents. The Democratic Party holds a majority in the National Assembly.
President Lee Jae-myung also appears to be proactive regarding the relocation of public institutions to provinces. Some members of the opposition, the People Power Party, have also shown a positive attitude toward relocating IBK. Rep. Yoon Jae-ok of the People Power Party previously proposed an amendment to the law in November 2024 to relocate IBK to Daegu.
However, the Democratic Party had previously strongly opposed the Yoon Suk-yeol administration's plan to move the KDB headquarters to Busan. Like IBK, KDB also requires a legal amendment to relocate its headquarters. In November 2022, then-Democratic Party spokesperson Im O-kyung pointed out, "Relocating KDB to Busan is a hasty move that considers none of the current circumstances," adding, "We cannot agree to a hasty relocation that ignores the voices in the field just because it is packaged as balanced regional development."
In March 2023, then-Democratic Party floor spokesperson Lee Su-jin also criticized the move, saying, "They are acting like thugs by trying to push through a relocation without the National Assembly's consent. The Yoon Suk-yeol administration must present the justification 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." Ultimately, the KDB headquarters was not relocated.
Currently, there is strong internal opposition to the relocation within IBK as well. If the Democratic Party forces the relocation while ignoring the voices within IBK, it would contradict their logic used against the KDB relocation.
The Korean Financial Industry Union (KFIU) stated in a release, "64.2% of SME loans are concentrated in the capital area, so isolating IBK from its client base is equivalent to abandoning its fundamental mission of supporting SMEs." They added, "Furthermore, pushing for a forced relocation that damages shareholder value for IBK, which is a listed company on the Korea Exchange, destroys the order of the market economy."
Ryu Jang-hee, head of the KFIU's IBK branch, said in a press conference on April 2, "During the presidential campaign, then-candidate Lee Jae-myung and the Democratic Party acknowledged the need to strengthen financial hubs and cluster financial institutions, promising to fully consider the negative effects of reckless regional relocation. Yet, they are easily flip-flopping ahead of the local elections." He criticized, "Promising to strengthen financial hubs, sympathizing with the side effects of reckless relocation, and even reviewing the results of the first round of relocations, only to now push for the relocation of IBK is a clear breach of promise."
Moreover, there is no guarantee that all Democratic Party lawmakers will agree to the IBK relocation. Those representing districts in the capital region may oppose it. Even when the Yoon Suk-yeol administration pushed for the KDB headquarters relocation, there were voices of opposition within the People Power Party, including from Seoul Mayor Oh Se-hoon.
Although candidate Kim Boo-kyum shows confidence in relocating the IBK headquarters, the surrounding environment is not favorable. Furthermore, the possibility of conflict between the financial union and the government cannot be ruled out. This is why questions remain about the feasibility of Kim's pledge.