Who Will Lead the Big-Money Pension Funds and Mutual Aid Associations Managing Tens of Trillions?

As the terms of office for some chairmen and chief investment officers (CIOs) of pension funds and mutual aid associations, which are regarded as major players in the capital market by investing as limited partners (LPs) in private equity funds (PEFs) and venture capital (VC), come to an end, the selection processes for their successors are set to proceed. Given that the investment direction of several trillion to tens of trillions of won is determined by the inclination of the top executive, attention is focusing on the outcome.

According to the investment banking (IB) industry on the 11th, the Korean Local Government Officials’ Credit Union has been proceeding with the process of selecting a new chairman since the 2nd of this month. It is accepting applications until the 27th, and those who pass the document screening will go through interviews with the Personnel Recommendation Committee. Based on the interview results, the candidates are reviewed by the Steering Committee, after which a vote is held at the General Assembly of Delegates of the Credit Union. A candidate must secure at least 37 votes, which is two-thirds of the total 55 delegates, to be finally elected. The new chairman then assumes office after obtaining approval from the Minister of the Interior and Safety. The chairman’s term is three years from the date of inauguration. The Local Government Officials’ Credit Union issued a public invitation for a new chairman in June last year ahead of Chairman Kim Janghoe’s term expiration in August last year. Four people applied during the document submission period, and two of them went through interviews with the Personnel Recommendation Committee, but the committee did not select any candidate to be recommended to the Steering Committee. As no further public invitation for a chairman was issued afterward, Chairman Kim’s term was extended by more than six months.

The Local Government Officials’ Credit Union is a mutual aid association for local government public officials. Using their contribution income and asset management profits as financial resources, it manages assets of 31 trillion won as of 2025. As one of the institutions under the Ministry of the Interior and Safety, the ministry’s intentions are heavily reflected in its personnel decisions. Chief Investment Officer Heo Jang also underwent the ministry’s personnel vetting when he was reappointed last year. An IB industry official said, “In the past, the timing of the public invitation for the chairman of the Local Government Officials’ Credit Union was sometimes coordinated in advance between the Ministry of the Interior and Safety and the Credit Union.”

The Construction Workers Mutual Aid Association, which manages about 5 trillion won in assets, also issued a recruitment notice last month for a chairman and a full-time auditor, and closed the document submission on the 2nd of this month. Former Chairman Kim Sangin resigned in September last year ahead of the National Assembly audit, citing various allegations raised against him and the launch of an audit by the Ministry of Employment and Labor. Since then, the chairman’s role has been carried out under an acting system.

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Some pension funds are also set to proceed with the selection of CIOs who are directly responsible for asset management. In the case of the Police Mutual Aid Association CIO, the process to select a successor is expected to begin as early as next month through an open recruitment announcement. The CIO post at the Police Mutual Aid Association has been vacant for more than 2 years and 2 months since the previous CIO stepped down in October 2023. In particular, the vacancy in key positions has been longer than at other mutual aid associations. Even the chairman appointment process failed once: a final candidate was selected in October 2024, but was not approved by the General Assembly of Delegates. Subsequently, after a 21-month vacancy, Chairman Lee Yeongsang took office last April.

Korea Investment Corporation (KIC), the sovereign wealth fund that manages 295 trillion won, recently posted a recruitment notice for a successor to Chief Risk Officer (CRO) Jung Hoseok, and closed document submissions on the 19th of last month. As KIC has so far appointed the CIO and CRO together, it is expected that the CIO selection process will begin as soon as this procedure is completed.

The National Pension Service, which manages 1,400 trillion won, saw the one-year extended term of Chief Investment Officer Seo Wonju end in December last year. Seo will continue to perform his duties until a successor is appointed, but with Kim Sungjoo recently inaugurated as Chairman and CEO of the National Pension Service, the full-scale selection process is expected to begin as soon as the Executive Recommendation Committee is formed. The process of appointing the head of the National Pension Service’s Fund Management Division can take up to four months, from the recruitment announcement, document screening, interviews, and personnel vetting to the final approval by the Minister of Health and Welfare.

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