Financial Sector in Turmoil Over 'Nakhasan Insas'... Former Blue House Administrator Appointed as 'New Deal Fund Head'
No Fund or Investment Experience, No Investor Asset Management Certification
Parachute Controversy Also in 2019
Former Minister Cho Kuk and former Administrative Officer Hwang Hyun-seon are seen having a conversation at the Blue House Press Hall. Photo by Yonhap News
View original image[Asia Economy Reporter Na Ye-eun] It has been revealed that a former Blue House administrative officer with no relevant experience or certifications was appointed as the head of the Investment Management Division at Korea Growth Investment Corporation, sparking controversy. Korea Growth Investment Corporation is the overall manager of the 'Korean New Deal Fund,' which the Moon Jae-in administration has been focusing on intensively.
According to the financial sector, Korea Growth Investment Corporation announced in a shareholder letter on the 1st that "at the shareholders' meeting on the 16th, we will propose the appointment of Hwang Hyun-seon, former senior administrative officer of the Blue House Civil Affairs Office, as the new head of the Investment Management Division 2." It is known that the board of directors has already approved Hwang's appointment as division head.
Korea Growth Investment Corporation recently established Investment Management Division 2 by separating the 'New Deal Fund management function' from the Investment Management Division. Therefore, Investment Management Division 2 oversees the operation and management of policy-type New Deal funds and corporate restructuring funds. This division invests in New Deal-related industries promoted by the government, discovers promising ventures and small and medium-sized enterprises, and supports corporate business restructuring.
Meanwhile, Hwang, who lacks any fund or investment-related experience and does not even hold the basic certification for fund managers, the Certified Investment Asset Manager license, has been appointed as head of Investment Management Division 2 at Korea Growth Investment Corporation, prompting backlash in the financial sector calling it a "parachute appointment."
Hwang is a former official of the Democratic Party of Korea, having served as the party’s Planning and Coordination Bureau chief and worked as the head of the strategic planning team in Moon Jae-in’s presidential campaign. After the Moon administration took office in May 2017, he moved to the Blue House Civil Affairs Office as a senior administrative officer, working closely with former Senior Secretary for Civil Affairs Cho Kuk.
In March 2019, he was also appointed as a standing auditor of Union Asset Management Company (UAMCO), a restructuring specialist company established by domestic banks, which also sparked controversy over parachute appointments.
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It is reported that neither the Korea Development Bank, a major shareholder of Korea Growth Investment Corporation, nor the Financial Services Commission, the relevant government ministry, were aware of Hwang’s appointment in advance. Some speculate that the friendship between Korea Growth Investment Corporation CEO Sung Ki-hong and a senior Blue House official influenced the personnel decision.
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