[Asia Economy Reporter Park So-yeon] The terms of chief investment officers (CIOs) at major pension funds and mutual aid associations are approaching expiration one after another. Market attention is focused on the reshuffling of these 'big players' managing tens of trillions of won in domestic and international investment markets.
According to the investment banking (IB) industry on the 14th, the Korea Scientists & Engineers Mutual Aid Association, Government Employees Pension Service, Private School Teachers' Pension (hereinafter referred to as Sahak Pension), and National Pension Service are all facing CIO replacements this year.
The term of Heo Seong-mu, head of asset management at the Korea Scientists & Engineers Mutual Aid Association, expires this month. Heo, who has served as CIO at the association since 2019, has overseen asset management for a total of three years after one reappointment. Although there were recent rumors about his nomination as the new CEO of Korea Growth Investment Corporation, the appointment of the next CEO and executives has reportedly been postponed due to the regime change period.
During Heo's tenure as CIO at the Korea Scientists & Engineers Mutual Aid Association, asset management returns were 8.15% in 2019, 5.78% in 2020, and 7.7% in 2021. The association has not yet started the process of selecting a successor.
The term of Seo Won-ju, head of the fund management division at the Government Employees Pension Service, lasts until next month. Seo began his term in May 2019 and has delivered performance around 10% over the past three years. Diversification of investment assets is also considered one of his achievements. The Government Employees Pension Service is currently conducting an open recruitment process for the CIO position.
The term of Lee Gyu-hong, head of fund management at Sahak Pension, expires in September. Lee has been managing the fund since October 2019. His term was extended by one year last year, resulting in a total of three years of service. During this period, he achieved consecutive returns in the 11% range, earning high evaluations in terms of performance and leadership.
The term of Ahn Hyo-jun, head of the fund management headquarters at the National Pension Service, also ends this October. Ahn began his term in October 2018. With one-year extensions in 2021 and 2022, he has served as CIO for a total of four years, setting the longest management record at the National Pension Fund. He recorded high returns of 11.3% in 2019, 9.7% in 2020, and 10.8% in 2021.
Typically, about three months before the expiration of the CIO term, the National Pension Service issues an external announcement to accept applications from candidates, so the procedure for selecting the next CIO is expected to begin soon.
An official from the financial investment industry said, "There have been many cases recently where CIOs who achieved good results at pension funds and mutual aid associations succeeded in their reappointments," adding, "With many positions nearing term expiration amid a regime transition, the market is paying close attention to the direction of changes that will take place."
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