A population of 390,000 collapsing, the highest commercial vacancy rate nationwide, financial discrimination worth over 1 trillion won. And ironically, institutions are leaving starting in 2025. The current status of Sejong City, the "administrative capital," as of July 22, 2026, is far from expectations. Will the "second phase relocation plan for Seoul metropolitan public institutions" that the Lee Jae-myung government announces in the second half of this year be the turning point that saves Sejong?

According to a comprehensive investigation on the 22nd, the administrative capital Sejong City currently faces comprehensive dysfunction as the wall of 390,000 residents crumbles. High commercial vacancy rates and out-of-region consumption are recording the highest levels nationwide, and financial discrimination worth over 1 trillion won is further weakening the city's self-sufficient functions. There is a severe shortage of basic infrastructure, with even McDonald's—easily found in any local city or county—not opening its first location until 2028, while the KTX station and department stores are also lacking. The Naseong-dong department store site has remained vacant for 14 years, marring the city's appearance.

To make matters worse, starting in 2025, institutions under the Ministry of Oceans and Fisheries are leaving Sejong City, creating a reverse flow that undermines the purpose of building an administrative capital complex city. An ironic situation is unfolding where Sejong City, built under the value of national balanced development aimed at alleviating Seoul metropolitan congestion and realizing regional autonomy, is instead trapped in the shadow of imbalance.

Amid this crisis, the Lee Jae-myung government has kindled a glimmer of hope for Sejong City by announcing the "second phase relocation plan for Seoul metropolitan public institutions" to be announced in the second half of this year, following a Ministry of Land, Infrastructure and Transport project last year. The government is reportedly reviewing the relocation of around 300 Seoul metropolitan public institutions.

[Photo=AI generated]

However, some raise the issue that "Sejong City is trying to have everything." Regarding this, a civil society official stated, "Sejong City is not already a city that has everything. It is important to develop it as a specialized administrative capital city in line with the purpose of national balanced development and state projects," emphasizing Sejong City's realistic difficulties and its role.

Sejong City is staking its future on attracting public institutions based on its excellent accessibility in the center of the country and strong relevance to 43 central administrative agencies and 15 national research institutions. In particular, it is actively emphasizing the necessity of relocating five presidential committees (National Integration Committee with 40 members, Broadcasting and Communications Commission with 281 members, etc.), four prime ministerial committees (Financial Services Commission with around 600 members, Personal Information Protection Commission with 156 members, etc.), and around 20 institutions related to the national research complex. This is based on the judgment that advance deployment of these committees is a prerequisite ahead of the opening of the President's second office in 2029.

The public institutions relocation plan to be announced in the second half of this year is expected to be a decisive remedy for Sejong City's autonomous growth and completion of the administrative capital complex city. For Sejong City to develop true self-reliance as a "specialized administrative capital city," the Lee Jae-myung government's second phase relocation plan must go beyond simple institutional relocation to become a "customized prescription" that deeply understands Sejong City's reality and envisions its future. Sejong City's future depends on the government's wise decision.