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The South Korean government is set to begin the second phase of transferring administrative and public institutions to different locations starting next year. This marks 21 years since the previous reform, which was proposed by the Lee Myung-bak administration in 2005. The current government's goal is to address the imbalance caused by over-concentration in the capital region and prevent the decline of smaller regions.

The government released a plan on March 3 outlining the transfer of central administrative institutions and public institutions to Sejong City and surrounding areas. The plan targets reducing the number of public institutions in the capital region to a minimum, focusing on centralizing innovations in the city. The first phase of this transfer, completed in 2019, relocated 150 institutions and 50,000 employees from the capital to other regions.

However, this did not significantly reverse the trend of capital region concentration or improve local economies enough to create new growth hubs. Critics argue that the current centralization trend, combined with inadequate living conditions and lack of improved living conditions for workers, has led to a significant number of employees staying in the capital with their families.

The government's promise to create innovative centers and connect regional industries with universities and local governments has not been met. The plan to reduce the number of public institutions to about 20% of the total is ambitious, but it requires strict regulations to prevent corporate welfare. Additionally, streamlining similar or redundant functions is necessary.

However, downsizing should not result in reduced public services for citizens. The complex relationships between government employees and local governments make it challenging to carry out these reforms. The government must maintain close communication with all stakeholders and move forward decisively under the leadership of the president.

Congress must also support this second phase of the transfer through legislation and budget allocations to ensure that it becomes a new form of national balance and development.