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| Korea Development Bank (KDB) Chairman and CEO Kang Seog-hoon speaks during a press conference to mark the first 100 days of his term at KDB headquarters in Yeouido, Seoul, Wednesday. Courtesy of KDB |
By Yi Whan-woo
Korea Development Bank (KDB) Chairman and CEO Kang Seog-hoon reaffirmed, Wednesday, a disputed plan to move KDB headquarters from Seoul to Busan, stressing it is critical for the development of the southeastern region that used to be the nation's hub for smokestack industries but is losing competiveness in the era of digitalization.
Speaking at a press conference to mark the first 100 days of his term, Kang also said the state-run KDB will finance 30 trillion won in the next five years for the chip industry as part of a broader picture to support the Korean economy amid a wave of global challenges.
"The southeast used to be at the center of economic growth when it was undergoing rapid industrialization, but not any longer," he told the press at KDB headquarters in Yeouido, Seoul, noting the relevant infrastructure for growth is concentrated heavily in the capital region in the era of the Fourth Industrial Revolution.
Busan, the country's largest port city, forms an area of heavy manufacturing industries in the country's southeastern region, along with Ulsan and the surrounding South Gyeongsang Province.
"Relocation of KDB will thus be necessary to collectively transform Busan, Ulsan and South Gyeongsang Province into one of the nation's two axes for the Fourth Industrial Revolution along with the Seoul metropolitan area," Kang said.
He added that transformation of the three areas accordingly will be in line with balanced regional development, a major reason for the relocation plan as pledged by President Yoon Suk-yeol.
Kang's remark came as he faces strong protest from KDB's unionized workers against the relocation plan.
The unionists argue the relocation plan will only hamper the nation's goal of nurturing the financial industry that is heavily concentrated in Seoul.
Under the circumstances, Kang said he will hold sufficient discussions with the union members to reach a consensus, adding, "I fully sympathize with their concerns and anger."
He said Korea is facing multiple economic challenges at a time when the decades-old rules of the free market economy is replaced by trade protectionism, and digitalization and green growth are accelerating.
Korea especially is being threatened by low potential growth that is expected to hit the zero percent range in 10 years.
Kang pledged that KDB will help the nation "take a big leap forward," saying it will "thoroughly support the industrial ecosystem."
The chip industry is a strong candidate to be one of the five industries that the state-run lender will pick for intensive financing.
Meanwhile, Kang also discussed other pending issues, such as financially salvaged companies that are under KDB control.
The companies include Daewoo Shipbuilding & Marine Engineering (DSME). It has been a headache for KDB as its sell-off plans have failed repeatedly for years, including January when the plan was called off due to a rejection by the European Union, a key interest group.
In addition, a 51-day-long strike between June and July by subcontracted workers of DMSE inflicted losses worth a total 816.5 billion won ($586.4 million) on the shipbuilder.
Kang said KDB is pushing for the successful sale of DSME "as fast as possible."
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| Unionized workers of Korea Development Bank (KDB) hold placards that read, "We're dead against moving KDB headquarters out of Seoul," during a protest at the main lobby of KDB in Yeouido, Seoul, in this photo taken on June 17. Korea Times file |
