The logo of Korea Development Bank is placed outside the state-run bank's Seoul headquarters in the financial district of Yeouido. Korea Times file

Employees of the Korea Development Bank (KDB) were reportedly reassured regarding the bank's future following the passage of an impeachment motion against President Yoon Suk Yeol, which significantly reduced the likelihood of the KDB relocating its headquarters to Busan.

More than a hundred workers left KDB during Yoon's time in government, protesting a proposal to relocate state-run financial institutions — which are heavily concentrated in Seoul — as part of an official push for more balanced regional development. The KDB was at the center of this plan.

The plan, however, began to immediately lose momentum after the ruling People Power Party's (PPP) crushing defeat in the general elections in April.

Under the circumstances, the National Assembly's passage of a motion to impeach Yoon in mid-December “completely suspended the relocation project,” sources familiar with the matter said.

“I'd say KDB workers are relieved of their anxiety about moving to Busan,” a member of the Korean Financial Industry Union said on condition of anonymity.

The union is a labor group representing workers at private and public banks nationwide.

The labor unionist noted that Yoon faces treason charges over his ill-fated declaration of martial law, along with the looming possibility of the president being ousted from office if the Constitutional Court upholds the National Assembly's impeachment motion.

“Even if the court vetoes the parliament's decision and Yoon returns to office, he may have to spend his remaining time in presidency as a lame duck,” the labor unionist said.

He noted that the opposition bloc dominates the Assembly whereas the PPP is currently dealing with internal struggle between Yoon loyalists and critics.

The KDB saw 97 employees leaving in 2022 — the first year of Yoon's presidency when the relocation plan gained momentum — with another 87 also leaving in 2023.

Of these employees, more than 60 percent were in their 20s and 30s. Most worked at the state-run bank for less than five years, prompting the KDB to hire new employees.

The KDB's labor union holds Chairman Kang Seog-hoon responsible for “mismanagement of personnel” after taking office in June 2022 as a parachute appointee.

Kang, formerly Yoon's economic adviser, advocated for the president's KDB relocation plan.

“We'll stop him from going for another term and pursuing a flawed plan,” a KDB unionist said, referring to a rule that allows an extended term when a chairman's first two-year term expires.

“The bank should return to normal, and such a mission can be achieved under a new leader,” the unionist said.