Major Players Managing Trillions Reach Term End One After Another... Market Focuses on Reappointment Decisions

As the terms of chief investment officers (CIOs) of major institutional investors such as pension funds and mutual aid associations in the domestic capital market approach expiration one after another, market attention is focused on the whereabouts of these 'big players.'

According to the investment banking (IB) industry on the 19th, the terms of CIOs at the National Pension Service, Teachers' Pension, and Government Employees Pension Service are nearing expiration.

The term of Seo Won-joo, CIO of the National Pension Service overseeing the management of the 1146 trillion won fund (as of the end of September), expires on the 26th. The original term is two years, with the possibility of one-year extensions based on performance. As of the end of Q3 this year, the Fund Management Headquarters recorded a 9.18% return, generating 97.2434 trillion won in earnings. Accordingly, the fund reserves increased to 1146.1 trillion won. In Seo CIO's first year in office last year, the fund achieved a record-high return of over 13.6%, exceeding 100 trillion won, and 12 executives and employees received awards such as the National Medal of Honor. Unless there are unexpected developments, Seo Won-joo's reappointment is expected. The reappointment is decided by the Minister of Health and Welfare notifying the National Pension Service and the chairman approving it, without separate committee procedures.

원본보기 아이콘

The Teachers' Pension is also conducting a successor selection process ahead of the expiration of current CIO Park Man-soo's term in January next year. Considering vacation and transition periods, Park CIO's effective term is said to end by the end of this year. The appointment of the Teachers' Pension CIO has always been through internal promotion. It is known that among internal candidates, those with experience across stocks, bonds, and alternative investments tend to be selected. The director appointment process follows the order of approval by the operating committee, approval by the Minister of Education, and appointment by the chairman.

The term of Heo Jang, CIO of the Government Employees Pension Service who took office in February two years ago, also expires in February next year. The Government Employees Pension Service previously completed a seven-year term under a long-term stable system with the former CIO, so Heo CIO is also highly likely to be reappointed. Baek Ju-hyun, CIO of the Government Officials Pension Service, also had his term extended for one year starting last July. The term for the Government Officials Pension CIO is two years, with the possibility of one-year contract extensions based on performance.

There are also places where the CIO position has been vacant for a long time. The Police Mutual Aid Association has had both the chairman (CEO) and CIO positions vacant for over a year. The current CIO position has been vacant for more than a year since former CIO Han Jong-seok retired in October last year. Before Han's appointment, the Police Mutual Aid Association managed nearly 4 trillion won in investment assets without a head for a year. Procedures for appointing a new chairman are currently underway, but considering recent internal police circumstances, it is expected that it may take longer than anticipated.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.