Banks warn of coordination hurdles as FSC moves headquarters to Sejong

The Financial Services Commission will move its headquarters from Seoul to Sejong in the second half of 2027, a step in the government’s plan to transfer 44 central agencies to the administrative city by 2031. Banking and securities firms, most of which are Seoul-based, have warned that the relocation could hinder timely communication with regulators, potentially causing operational inefficiencies and slower responses to crises, as highlighted by recent AI-assisted cyber-attacks on multiple institutions.

While some banks consider expanding remote communication tools, they remain uneasy about the need for in-person meetings and the travel time required via high-speed train. The Financial Supervisory Service, currently in Yeouido, is not slated for the move, though its relocation will be examined in a later phase, prompting opposition from its labor union. Labor groups such as the Korea Financial Industry Union and the FSS union have criticized the plan, arguing it could weaken the country’s financial competitiveness. Even members of the Democratic Party of Korea, including Rep. Lee Un-ju, have expressed doubts about dispersing financial policymaking bodies.