Officials on Edge as Sejong Relocation Is Brought Forward to First Half of Next Year

Fears grow over work disruptions as move comes sooner than expected

Government agencies slated to relocate to Sejong are on edge after the government unveiled a plan to move central administrative bodies. The faster-than-expected timetable is stoking concern over housing and children's schooling for staff, as well as the possible loss of specialist personnel. There are also worries that coordination with companies and related institutions based in Seoul could be disrupted.

According to the government on Oct. 13, six agencies, including the Korea Communications Commission, the Personal Information Protection Commission and the National Human Rights Commission of Korea, will move to Sejong in the first half of next year. The agencies scheduled to relocate in that period employ a combined 1,101 people. The Financial Services Commission is set to move in the second half of next year.

The Korea Communications Commission has been caught off guard by the earlier-than-expected schedule. “We didn’t expect to move as soon as the first half of next year,” a senior official at the director-general level said, adding that younger staff were particularly shaken.

The Personal Information Protection Commission is facing similar concerns. A string of recent hacking incidents and personal data leaks has heightened the importance of its investigative and oversight work, while raising the prospect of departures among specialist staff. Demand from law firms and private companies for employees with experience in privacy regulation and investigations has risen, according to a commission official. A move to Sejong could encourage talented personnel to change jobs.

The National Human Rights Commission of Korea also reacted with surprise, saying the relocation plan had been announced without prior consultation.

The burden on companies is also set to increase. If agencies that investigate and supervise businesses, such as the Financial Services Commission and the Personal Information Protection Commission, move to Sejong, financial firms and other companies will have to travel between Seoul and Sejong for investigations, explanations and policy consultations.

The Financial Services Commission, which is due to move in the second half of next year, is worried about disruptions because key partner institutions, including the Financial Supervisory Service and the Bank of Korea, will remain in Seoul. The governor of the Financial Supervisory Service, the Bank of Korea's senior deputy governor and the president of the Korea Deposit Insurance Corp. are also ex-officio members from Seoul-based institutions who take part in the commission's regular meetings. The commission also meets frequently with financial companies. “We need to consult with related institutions on policy whenever necessary, not just at regular meetings,” an official at the commission said. “If we move to Sejong, face-to-face consultations could become more difficult. We’re concerned that our ability to respond to crises could weaken at a time of growing instability in financial markets.”

Lee Young-ae, Korea Economic Daily reporter 0ae@hankyung.com

Cho Mi-hyun, Korea Economic Daily reporter mwise@hankyung.com