KB Securities Selected as OCIO for Small and Medium Venture Business Corporation Performance Reward Fund

KB Securities announced on the 3rd that after being selected as the preferred negotiator for the external entrusted operation management (OCIO) of the Small and Medium Business Administration's 'Small Business Youth Workers and Key Personnel Performance Reward Fund (hereinafter referred to as the Performance Reward Fund)' on October 30, it signed the main contract on the 28th of last month.

The Performance Reward Fund is a fund established under the Special Act on Support for Small and Medium Business Personnel, financed by the mutual aid reserves paid by small and medium enterprises and their employees. The fund consists of policy mutual aid projects such as the Tomorrow Filling Mutual Aid, which promotes long-term employment of key personnel in small and medium enterprises and fosters small and medium enterprise personnel, and the Small Business Employee Preferential Savings Mutual Aid.

The Performance Reward Division of the Small and Medium Business Corporation announced the OCIO re-selection notice last September. KB Securities, along with several financial institutions that participated in the bidding, took part in the final evaluation on October 29, was selected as the preferred negotiator, and secured the OCIO status through the main contract signing.

KB Securities plans to manage about half of the approximately KRW 1.8 trillion Performance Reward Fund (as of the end of October 2024) for four years starting from December 23, handling bonds, stocks, alternative assets, as well as risk management, performance evaluation, and providing advisory services for the fund.

Kim Seong-hee, Head of OCIO Solutions Division at KB Securities, said, "It is significant to be selected as the largest scale fund OCIO this year," adding, "As the OCIO of the Performance Reward Fund, we will actively resolve the fund’s current issues and reflect demands in fund management to upgrade the asset management system to the next level." He also stated, "Since starting the OCIO business in 2018, KB Securities has steadily expanded its organization and workforce to secure competitiveness," and added, "Having accumulated a sufficient track record as an OCIO over a long period through various types of funds and this Performance Reward Fund operation, we hope to contribute to the development of public and private pension fund systems through asset management in pension investment pools and retirement pension markets in the future."

Lee Hong-gu, CEO of KB Securities, said, "KB Financial Group implements various policies to enhance social value, especially providing connections between small and medium enterprises and job seekers to create quality jobs, and offering consulting services to strengthen the business capabilities of small businesses and small merchants," adding, "We are honored that KB Securities has been entrusted with managing the fund for small businesses and their employees, allowing us to participate in creating social value."

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