Reasons for Proposal and Major Provisions

The current Act subsidizes the relocation expenses of a public institution that relocates from the Seoul metropolitan area to another area. It also requires the relocating public institution to hire a certain percentage of employees from among graduates or expected graduates of schools located in its new region, and to give preference to the purchase of goods and services produced in the new region.

However, a relocated public institution that is released from its designation as a public institution is no longer required to comply with the local hiring requirement and this may have an adverse impact on the community if the cancellation of designation was unexpected.

Accordingly, the Amendment prescribes that where a relocated public institution is released from its designation as a public institution or is otherwise no longer considered a relocated public institution in accordance with relevant statutes, it shall still comply with local hiring requirements for three years from when the grounds for cancellation of designation take effect, thereby aiming to contribute to the development of the local community (Article 29-6 newly inserted).