[Exclusive] K-Growth CEO Appointment Process Nears Completion... KDB Candidate Excluded

Board to Vote on CEO Appointment on May 21
Formal Appointment at Shareholders' Meeting
Ending Nine Months of Acting Leadership

The appointment process for the new CEO of Korea Growth Investment Corporation (K-Growth), a master fund management specialist, is coming to a close. At one point, there were rumors about a candidate from Korea Development Bank (KDB) being selected, but it has been reported that no such individual was included in the final shortlist.

According to the investment banking (IB) industry on May 20, the CEO Candidate Recommendation Committee of K-Growth has selected the final candidate and submitted the proposal to the board of directors. The board meeting is scheduled for May 21. If the board approves the agenda, the CEO will be formally appointed at the shareholders' meeting scheduled for next month. As K-Growth is set to celebrate its 10th anniversary with a commemorative event in June, the company is expected to conclude the CEO appointment process in line with this milestone.

Korea Growth Investment Corporation

During the public recruitment process for this CEO position, speculation arose in the market about the appointment of a candidate from Korea Development Bank. However, it has been confirmed that none of the applicants had a background at KDB. The reason for the speculation regarding a KDB-affiliated candidate stemmed from K-Growth’s unique “quasi-private, quasi-public” governance structure. Established in 2016, K-Growth’s largest shareholder was a private equity fund (PEF) called Korea Growth Private Equity Limited Partnership. This fund was jointly invested in by the Korea Exchange, Korea Securities Depository, and Korea Financial Investment Association. In addition, KDB and Industrial Bank of Korea were also major shareholders. After the dissolution of the private equity fund, the Korea Exchange, Korea Securities Depository, and Korea Financial Investment Association took over the fund’s shares and became joint shareholders. While K-Growth is legally a private institution, it has a unique structure with strong government influence. In particular, K-Growth originated as an internal organization within KDB (Growth Ladder Fund Secretariat), and a significant portion of the master fund capital managed by K-Growth consists of policy funds contributed mainly by KDB.

This appointment will fill the leadership vacancy that has lasted for about nine months. Heo Sung-moo, the current CEO of K-Growth, completed his term in August last year, but has continued to serve as acting CEO due to the absence of a successor. After the CEO is appointed, the selection of the head of investment management—which has been vacant for an even longer period—is also expected to follow. This position has also been managed by an acting official since the previous head stepped down in February last year.

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