[Financial News] The 44 central administrative agencies still based in the capital region will move their workplaces to Sejong City. Twenty-seven agencies that do not need separate offices will complete their relocation during 2027, while 17 investigative, diplomatic and security agencies will move in stages after new offices are built by 2031. The government is also pursuing revisions to the Special Act on the Construction of Administrative City, which designates the Ministry of Foreign Affairs, Ministry of Unification and Ministry of National Defense, among others, as exempt from relocation to Sejong City. According to the Ministry of the Interior and Safety on the 13th, after reviewing 142 administrative agencies based in the capital region, the government set the principle of moving all central government ministries to Sejong City while excluding affiliated agencies that deal directly with the public on civil petitions. The confirmed scale of the second-phase relocation is 9,929 civil servants, based on authorized headcount. That is about two-thirds of the 14,731-person headcount of the 43 agencies when they relocated to Sejong starting in 2012. Yoon Ho-jung, Minister of the Interior and Safety, personally outlined the plan at a briefing at Government Complex Seoul that day. It follows the government’s review of each agency’s functions, characteristics and relocation conditions after it announced its “Direction for Promoting the Relocation of Central Administrative Agencies in the Second Phase” on September 3, consulted with relevant agencies and gathered expert opinions four times. The agencies expected to take the longest are those that need independent offices and specialized facilities. They comprise five criminal justice agencies—the Board of Audit and Inspection, Korean National Police Agency, Public Prosecution Office, Serious Crime Investigation Agency and Corruption Investigation Office for High-ranking Officials (CIO)—with 4,171 personnel; the Ministry of Foreign Affairs, Ministry of Unification and Ministry of National Defense, with 2,106; and nine affiliated agencies, including the Korea National Diplomatic Academy, Korea Defense Media Agency and National Geographic Information Institute, with 657. Together, the 17 agencies have 6,934 personnel. The government expects they could relocate around 2031 if construction of their offices begins next year. Agencies linked to the president, such as the Presidential Secretariat and Office of National Security, will be considered separately, taking into account factors including when the presidential office has fully relocated. The Sejong presidential office is targeted for completion in 2029, and the Sejong branch of the National Assembly in 2033. The remaining 27 agencies, with 2,995 personnel, will move first by renting private-sector buildings in the Sejong area. In the first half of next year, six agencies will be the first to relocate, including the Broadcasting Media and Communications Commission, Personal Information Protection Commission, Nuclear Safety and Security Commission, National Human Rights Commission of Korea, National Education Commission and Overseas Koreans Agency. In the second half, 19 more will follow, including the Financial Services Commission, ministry-affiliated agencies and advisory bodies such as the National Economic Advisory Council and Population Strategy Committee. The Ministry of Justice and Ministry of Gender Equality and Family will finalize their relocation schedules based on when the Special Act on the Construction of Administrative City is amended. The cost will also be substantial. The government estimates that about 89.7 billion won will be needed for office rent, fit-out and operating costs, as well as relocation assistance for civil servants at the agencies moving next year under lease arrangements. It estimates that about 3.1 trillion won will be required to build offices for agencies that need independent premises, as well as for agencies that will initially occupy rented offices and move again later. The government plans to include about 28.6 billion won for basic design work in the 2027 budget and begin the construction process. However, the total project cost could vary depending on each agency’s location, facility size, land acquisition and design outcomes. Support measures for relocating civil servants will also be put in place. The government will provide moving expenses and initial relocation assistance, and is considering offering commuting transportation for a set period to civil servants who cannot move immediately because they have not found housing or their children’s school term has not ended. After completing statutory procedures, including consultations with relevant agencies and public hearings, the government plans to revise and announce the “Relocation Plan for Central Administrative Agencies, etc.” Each agency will also draw up business continuity measures to ensure that civil petition services and licensing work are not interrupted during the relocation period. The finalized plan is considerably broader in scope than the direction announced just over a month ago. When it made that announcement last month, the government said it would first remove the Ministry of Justice and Ministry of Gender Equality and Family from the list of agencies exempt from relocation, while reviewing the Ministry of Foreign Affairs and Ministry of Unification in light of the presidential office’s relocation and the opening of the Sejong branch of the National Assembly. The Financial Services Commission was also left off the list in that announcement, but the government explained at the time that it had not been excluded. This time, all three ministries responsible for foreign affairs and national security, including the Ministry of National Defense, are on the list for relocation to newly built offices. The key lies with the National Assembly. Article 16 of the current Special Act on the Construction of Administrative City exempts five agencies—the Ministry of Foreign Affairs, Ministry of Unification, Ministry of Justice, Ministry of National Defense and Ministry of Gender Equality and Family—from relocation to Sejong, so these ministries cannot move unless the law is amended. The Ministry of the Interior and Safety was also once exempt, but after an amendment removed it from the list, it moved to Sejong in 2019. The administrative system split between Seoul and Sejong has long been criticized for causing inefficiencies, including frequent trips to Seoul by civil servants to respond to the National Assembly and attend meetings. This is also why the government drew up a “Plan to Establish Sejong-Centered Work Practices” in 2019 and, in principle, banned trips to Seoul for internal reports and meetings. [email protected] Jeong Gyeong-su Reporter