Busan public institutions show low deposit rates at local banks

Public institutions relocated to the Busan International Finance Center (BIFC) maintain a low deposit rate of less than 15% with BNK Busan Bank. Despite having total deposits reaching approximately 7.07 trillion won, only 1.05 trillion won is held at the local bank, according to data from lawmaker Park Seong-hoon.

While the deposit rate rose from 11.3% in 2024 to 14.9% in 2025, critics argue this is a statistical illusion caused by a significant decrease in the total deposit volume of the Korea Housing Finance Corporation. Many institutions, including the Korea Securities Depository and Korea Asset Management Corporation, utilize bidding processes to secure the highest interest rates, often favoring metropolitan commercial banks over local ones.

In contrast, 17 public institutions under the Busan Metropolitan Government maintain a 62.3% deposit rate with Busan Bank. Local officials emphasize that without institutional incentives to support regional banks, the relocation of public agencies fails to achieve true balanced regional development, as capital continues to flow toward the Seoul metropolitan area.