Moving Industrial Bank of Korea (IBK) headquarters outside the capital region could generate national economic losses of 40.99 trillion won ($29.5 billion) over 10 years, according to a report by the Korean Association for Policy Analysis and Evaluation commissioned by the bank’s labor union. The analysis estimates an annual net loss of 5.88 trillion won after accounting for 366.1 billion won in benefits to the receiving region, with 93% of the damage linked to financing channels serving small and mid-sized enterprises. Because loans of 30 billion won or more require final approval from headquarters and 71% of small and mid-sized enterprises are located in the capital region, the report says relocation could delay inspections, collateral appraisals, credit decisions and policy-fund disbursements. IBK itself could lose up to 2.4 trillion won over the decade, including relocation costs, staff departures, lost business opportunities and higher operating expenses. Cumulative dividends could fall by 789.6 billion won, including a 541.2 billion-won decline for the government, which holds a 68.5% stake including public institutions. The report said effects would spread across sectors such as wholesale and retail, food service and lodging, research and development, and automotive supply chains.