South Korea Considers Moving Financial Regulator to Sejong City

The administration of Lee Jae Myung is considering relocating the Financial Supervisory Service (FSS) from Seoul to the administrative city of Sejong. The proposal is part of a broader government strategy to reduce the concentration of population and business in the capital. As part of this decentralization effort, the government is also exploring the creation of a new financial center in Jeonbuk province.

The potential move has triggered intense opposition from FSS employees. A labor union survey of 1,538 staff members found that 85.6% would consider quitting if the relocation occurs, with nearly 93% of employees under 40 expressing the same sentiment. Lawmakers and critics warn that separating the regulator from the financial firms it oversees in Seoul will diminish supervisory effectiveness and accelerate a brain drain of IT specialists, accountants, and lawyers.

Data provided to opposition lawmaker Park Sung-hoon indicates the agency is already facing a personnel crisis, with 481 staff members departing between 2022 and July 2026. Opponents argue that the move would exacerbate this existing exodus and compromise the regulator's overall competitiveness.