Four National Pension Fund Managers Accused of Drug Use

[Asia Economy Reporter Park Ji-hwan] It has been reported that four fund managers at the National Pension Service (NPS) Fund Management Headquarters, which manages national retirement assets worth 752 trillion won, are under police investigation for drug use allegations. The NPS recognized their drug use in July and took actions including police reporting and dismissal.

According to the police and the NPS on the 18th, one chief fund manager responsible for alternative investments and three former fund managers at the Fund Management Headquarters have been booked without detention on charges of violating the Narcotics Control Act, including marijuana smoking, and are under police investigation.

The investigation is being handled by the Narcotics Investigation Unit of the Jeonbuk Provincial Police Agency, where the Fund Management Headquarters is located. The police have collected hair samples from them to test for marijuana use. They previously appeared before the police as suspects on marijuana smoking charges and were questioned once. A police official stated, "The investigation into the marijuana use suspects is expected to be concluded within this month." It is reported that those accused have no prior related criminal records.

The NPS recognized signs of their drug use in July, conducted an internal investigation, and proceeded with work exclusion and reporting to the relevant police authorities. On the 9th of this month, a disciplinary committee was held and dismissal decisions were made for the four individuals.

This is not the first time the NPS has been embroiled in controversy related to fund management. In October 2018, it was revealed that 114 employees of the Fund Management Headquarters went on overseas training trips supported by overseas entrusted management companies. According to the NPS employee code of conduct, receiving money or valuables from persons related to their duties, regardless of whether it is in exchange for something, is prohibited. In February 2017, it was also revealed that three retirees sent confidential fund management information. Among them, including one director, three individuals were found to have stored confidential information such as project investment materials and detailed investment plans on external hard drives and personal computers.

The NPS stated, "We will take strict measures with a zero-tolerance policy against serious illegal acts, strengthen internal controls by conducting public service discipline training for all employees to prevent recurrence, and ensure that fund management is not disrupted." However, they added, "Since the police investigation has not yet been fully completed, it is difficult to confirm more specific details."