■ Critical Considerations for Relocating the Nine Mutual Aid Associations

● The nine mutual aid associations may take a cautious or opposing stance toward relocation to non-capital regions, given (1) their ineligibility for designation as public institutions under the Act on the Management of Public Institutions, (2) their member contribution-based operational structure, and (3) concerns that separation from Seoul’s financial networks can adversely affect their investment returns.

● Jeonbuk should frame a differentiated relocation model that reflects the public nature, member asset protection needs, asset management structures, welfare functions, and institution-specific characteristics of the mutual aid associations, rather than treating them merely as targets for regional relocation.

■ National Pension Service Linkages: Policy Rationale for Addressing Concerns over Lower Investment Returns

● The relocation of the National Pension Service (NPS) Investment Management Division to Jeonju does not appear to have impaired investment performance. Average post-relocation returns have exceeded the three-year pre-relocation average, challenging the notion that regional relocation automatically leads to lower investment returns

● Jeonbuk, home to the NPS Investment Management Division in Jeonju and the nation’s only hub for long-term public fund management, can present the relocation of the nine mutual aid associations as an NPS-linked strategy for advancing alternative investment capabilities, reinforcing risk management systems, and expanding ties with global asset managers.

■ A Jeonbuk Financial Ecosystem for Alternative Investment-Focused Mutual Aid Associations     

● The nine mutual aid associations, with their greater reliance on alternative investments than the NPS, require well-developed support systems across the full investment cycle, including deal sourcing, due diligence, legal and tax advisory services, fair value assessment, and post-investment management for illiquid assets such as real estate, infrastructure, private equity, and private credit.     

● Jeonbuk should develop a Seoul–Jeonbuk dual-track alternative investment platform integrating Seoul’s deal origination and advisory functions with Jeonbuk’s NPS-linked capabilities in investment review, risk management, and middle- and back-office operations, with the platform designed to complement, not replace, Seoul’s financial networks.

■ A Relocation Model Tailored to Institution-Specific Characteristics

● Variations in membership composition and institutional functions among the nine mutual aid associations necessitate a phased functional relocation model tailored to distinct institutional profiles—such as asset management; local finance and regional development; public safety and frontline welfare; construction and infrastructure; and science, technology, and emerging industries—rather than a one-size-fits-all headquarters relocation approach.

● Differentiated Attraction Strategies by Association:

a​The Korean Teachers’ Credit Union, Military Personnel Mutual Aid Association, Korea Scientists and Engineers Mutual-Aid Association, and Public Officials Benefit Association: an NPS-linked hub for advanced asset management

a​Local Finance Association: a hub for fiscal risk management

​a​Police, Firefighting, and Correctional Mutual Aid Associations: a hub for wellness, training, and welfare services

a​Construction Workers Mutual Aid Association: a hub for safety education and vocational training

■ A Jeonbuk-Tailored Policy Package and Strategic Directions for Maximizing Relocation Effects

● As a strategic initiative to attract the nine mutual aid associations, Jeonbuk should formulate a four-pronged package comprising the following: (1) advanced asset management linked to the NPS, (2) expanded alternative investment aligned with regional strategic industries, (3) enhanced member services centered on mutual aid and welfare functions, and (4) quantum security and quantum finance demonstration projects.

● Beyond the logic of forced relocation and demands for regional contribution, Jeonbuk should leverage the relocation of the nine mutual aid associations to embed them within a public asset management ecosystem built on member asset protection and sophisticated asset management capabilities. Accordingly, Jeonbuk can simultaneously advance its pursuit of designation as a third financial hub and further solidify the policy rationale for attracting public financial institutions.

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