South Korea is seeking to create a new financial center outside Seoul to reduce overconcentration in the greater metropolitan area, which houses more than half the country’s population [1, 2, 3]. Jeonbuk province, located about 200 kilometers south of Seoul, is under consideration as a candidate site for this new financial hub [1, 2, 3].

A committee composed of government officials, academics, and industry experts convened on August 19 to evaluate Jeonbuk’s potential to develop into a global financial centre. The group will assess the region’s ability to attract domestic and international financial institutions and meet global standards [1, 2, 3].

The National Pension Service, which manages over US$1 trillion in assets, relocated its headquarters to Jeonbuk in 2015, marking an early step toward decentralizing financial services beyond Seoul [1, 2, 3].

The South Korean government said it will "encourage financial market innovation, establish infrastructure that complies with global standards, and vitalise the capital market to be more foreign investor friendly" [2]. The Financial Services Commission added it will "actively support the overseas expansion of local financial institutions and boost communication with global financial firms operating in South Korea" [1].

The initiative aligns with President Lee Jae Myung’s broader effort to balance national development and reduce the concentration of business, population, and jobs in Seoul [1, 2, 3]. Similar decentralization measures have been pursued by other countries including Japan, China, and India. For instance, Japanese lawmakers in July approved a bill to designate backup regions should Tokyo be incapacitated by a disaster [1, 2]. Earlier in 2026, China promoted development of the Xiongan metropolis near Beijing for similar reasons [1, 2].

South Korea is also planning to build a large semiconductor hub in its far south, separate from the financial center initiative [1, 2].

The committee evaluating Jeonbuk’s viability is expected to continue discussions and provide recommendations on the new financial hub in the coming months [1, 2, 3].