Controversy Over Parachute Appointment at Korea Growth Investment Corp Leading New Deal Fund: "CEO Recommended by Former Blue House Administrator"

[Asia Economy Reporter Park Sun-mi] Korea Growth Investment Corporation, responsible for managing the 20 trillion won policy-type New Deal fund, has revealed that a former Blue House administrative officer without investment management experience or certifications was nominated as a head based on the recommendation of the CEO.

According to the 'Korea Growth Investment Corporation Executive Selection Process' document received by National Assembly member Kang Min-guk's office from the Korea Development Bank on the 13th, the person who recommended former Blue House administrative officer Hwang Hyun-sun as an executive of Korea Growth Investment Corporation was the current CEO, Sung Ki-hong. Executives of Growth Investment Corporation are recommended by either the CEO or outside directors, and after verifying disqualifications, are approved at the shareholders' meeting.

Rep. Kang stated, "Despite the position overseeing the operation of a policy fund worth 20 trillion won (Head of Investment Management Division 2), the nominee recommended by the CEO lacks investment management experience and relevant certifications," adding, "Korea Growth Investment Corporation is a company mostly funded by financial public institutions such as Korea Development Bank and Industrial Bank of Korea, so it is appropriate to appoint executives with excellent related experience and certifications through a hiring process."

He further said, "If an executive of Korea Growth Investment Corporation incurs losses while managing policy funds, the responsibility lies entirely with the recommending CEO, who could be legally held accountable," and urged, "Financial authorities should recommend establishing open recruitment procedures and supervise and manage institutions like Korea Growth Investment Corporation, which operate massive policy funds, at the level of public institutions."

Although it is known that former administrative officer Hwang was effectively nominated to the Investment Management Division 2, Korea Growth Investment Corporation has taken the stance of 'undecided' regarding his position amid parachute appointment controversies. However, looking at the executive structure of Korea Growth Investment Corporation, none of the three outside directors hold financial-related certifications, and one of them served as a secretary at the Blue House during President Roh Moo-hyun's administration, leading to a prevailing view that former administrative officer Hwang is likely to take on a significant role despite lacking certifications.

Meanwhile, Korea Growth Investment Corporation is currently conducting the second round of the '2021 국민참여 New Deal Fund' investment project with the Korea Development Bank. The second round aims to additionally raise 100 billion won (80 billion won from public funds and 20 billion won from the treasury) for the 국민참여 New Deal Fund, which sold out within a week of its launch during the first round in the first half of the year. A total of eight entrusted management companies will be selected by the end of October, and the fund is scheduled to be launched at the end of November or early December, with sales to the public lasting up to two weeks.

This content was produced with the assistance of AI translation services.