Announcement of Selected Trading Institutions for Direct Overseas Stock Investment by Sahakyeongeum

[Asia Economy Reporter Minji Lee] The Private School Teachers' Pension Service (hereinafter referred to as PSTPS) announced on the 28th that it has begun the process of selecting trading institutions for 'direct investment in overseas stock exchange-traded funds (ETFs)'.

A total of six trading institutions will be selected through this public offering, and after conducting quantitative and qualitative evaluations of the trading institutions that apply by October 12, the final selection results will be announced in mid-October.

Eligibility criteria for trading institutions include: ▲ institutions registered as investment dealers or investment brokers with a net capital ratio of 150% or higher ▲ ability to trade overseas stocks and overseas exchange-traded collective investment schemes (ETFs) ▲ asset management companies capable of transmitting and receiving transaction history and settlement information with PSTPS. All three conditions must be met.

PSTPS plans to revise related regulations for direct overseas stock investment by going through the Asset Management Committee and the Pension Operation Committee this month to reorganize systems such as the Investment Policy Statement (IPS) and fund operation rules. It aims to complete the selection of trading institutions for investment execution and the establishment of related order management systems by the end of this year.

Lee Gyu-hong, CIO of PSTPS, said, “By changing and operating some of the overseas stocks, which were previously managed through delegation, to a direct investment method, we expect not only cost savings in management fees but also improvements in the transparency and efficiency of overseas investments. Additionally, we will continue efforts to strengthen the expertise of internal staff in fund management and to ensure stable fund operation.”