Government cites need for public deliberation; relocation outline expected in October-November

Central government agency relocation also dropped from Cabinet agenda

Financial union threatens general strike next month as labor opposition grows

Members of the National Office and Financial Services Workers' Union chant slogans outside the fountain plaza in front of Cheong Wa Dae in Jongno-gu, Seoul, on Tuesday ahead of a press conference calling on the government to halt what they called unilateral relocation plans for the National Agricultural Cooperative Federation, Korea Teachers' Mutual Aid Association, Korea Inclusive Finance Agency and Credit Counseling and Recovery Service. [Yonhap]
Members of the National Office and Financial Services Workers' Union chant slogans outside the fountain plaza in front of Cheong Wa Dae in Jongno-gu, Seoul, on Tuesday ahead of a press conference calling on the government to halt what they called unilateral relocation plans for the National Agricultural Cooperative Federation, Korea Teachers' Mutual Aid Association, Korea Inclusive Finance Agency and Credit Counseling and Recovery Service. [Yonhap]

The Lee Jae-myung government's second round of public institution relocations — aimed at moving every Seoul-based agency out of the capital — appears to be hitting the brakes.

Working-level talks between the government and labor have been postponed, and a discussion on relocating central government ministries was dropped from the Cabinet agenda. With the government now expected to finalize relocation procedures around October or November after public deliberation and union consultations, labor groups are recalibrating their response.

According to labor circles, the Ministry of Land, Infrastructure and Transport and related ministries notified the Joint Countermeasures Committee of the two major union federations' public-sector unions Wednesday that they were postponing working-level consultations scheduled for that day.

The committee includes the Federation of Korean Trade Unions-affiliated Public Sector Workers' Federation, Public Service Federation and Financial Industry Union, as well as the Korean Confederation of Trade Unions-affiliated Public Transport Workers' Union and Korean Health and Medical Workers' Union. The government and the committee have held talks on the second round of public institution relocations since June, and the postponed session would have been their third working-level meeting.

Labor groups believe the government has pushed back its relocation timetable from initial expectations. There had been speculation that the government could unveil a plan — including target institutions and guiding principles — by the end of this month, and the postponed meeting had been expected to involve substantive discussions on which institutions would be moved and how.

With the government notifying the committee of the postponement, observers say an end-of-August announcement now looks unlikely. A committee official said the government told them it was delaying the working-level talks because the relocation schedule appeared to be slipping.

Discussions on relocating central government ministries have also yet to get off the ground. There had been speculation that the Cabinet meeting held Tuesday would take up the issue, but it was ultimately left off the agenda.

The Ministry of Interior and Safety oversees the relocation of central government agencies, while the Ministry of Land, Infrastructure and Transport handles public institution relocations. Once target agencies and destination regions for central government ministries are determined, the relocation of public institutions under those ministries is expected to be addressed in tandem.

The government has said it needs considerable time for public deliberation and stakeholder consultations.

Land, Infrastructure and Transport Minister Kim Yun-deok told a plenary session of the National Assembly's Budget and Accounts Committee on Monday that the second round of public institution relocations was expected "around October or November, as the process requires public deliberation."

Kim added that the government planned "to hear from unions and wrap up the process through official public hearings." The remarks were widely interpreted as a signal that the government intends to finalize a concrete plan through union consultations and public hearings rather than unilaterally designating relocation targets.

As the likelihood of a delayed announcement grows, labor groups are reassessing their strategy while keeping a close watch on the government and ruling party. Press conferences and rallies timed to coincide with the expected announcement are also expected to be rescheduled.

The National Office and Financial Services Workers' Union held a press conference Tuesday in front of Cheong Wa Dae, declaring its opposition to what it called unilateral relocation plans for the National Agricultural Cooperative Federation, Korea Teachers' Mutual Aid Association, Korea Inclusive Finance Agency and Credit Counseling and Recovery Service.

The union said the government was pushing ahead with relocations without adequately accounting for the fact that each institution has a different founding purpose, legal character, funding structure and operational function, and called for discussions that reflect each institution's distinct characteristics.

The Financial Industry Union has gone further, announcing a general strike for Sept. 4 over the relocation issue and others. The union argues that because Seoul is designated as a financial hub, dispersing financial institutions would undermine the industry's agglomeration benefits.

Even if the government proceeds with public deliberation, disputes between labor and the government over whether financial institutions should remain in Seoul, the criteria for selecting relocation targets and support measures for affected workers are expected to persist.


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