Yoon to Increase Headquarters Staff by About 50 Next Year
"Profitability Is a Very Important Task"
Emphasis on Urgent Measures
The National Pension Service (NPS) will increase its headquarters staff by about 50 next year. This measure aims to boost the NPS's investment returns by expanding its fund management personnel.
According to the Ministry of Economy and Finance and related agencies on the 26th, the NPS plans to increase its fund management staff by about 50 next year. The Ministry of Health and Welfare and the NPS requested an increase of 70, but the Ministry of Economy and Finance finalized the number at 50. A government official explained, "While most public institutions are reducing their staff under the small government policy, the NPS has decided on a relatively large increase." This year, the NPS's fund management staff was frozen at 376 amid the government's public institution restructuring policy.
The decision to increase the NPS's fund management staff reflects a strong commitment to improving the fund's investment returns. In March, President Yoon Suk-yeol emphasized the importance of raising fund management returns alongside institutional pension reforms, calling for extraordinary measures. The average fund size managed per NPS fund manager is about 2 trillion KRW. This is significantly larger compared to the Canada Pension Plan Investment Board (CPPIB) and the Dutch public pension fund (ABP), where the assets managed per person are approximately 260 billion KRW and 650 billion KRW, respectively. Over the past decade (2013?2022), the average returns of major global public pensions were 10% for Canada, 7.03% for the U.S., and 6.69% for Norway, while Korea's was only 4.7%.
However, it is uncertain whether the increase in staff quota will translate into actual recruitment. The NPS is already struggling to fill its current positions. As of the second quarter, the Fund Management Headquarters had 321 fund managers, 55 short of the authorized 376. Despite annual recruitment efforts, attracting talented personnel remains difficult due to reluctance to work in provincial areas. Since relocating to Jeonju, Jeollabuk-do in 2017, the NPS has experienced continuous turnover among fund managers.
Within and outside the NPS, voices are growing that relocating the fund management organization to Seoul is necessary to continuously attract top talent. A source familiar with the NPS said, "The core of fund management is gathering key information, communicating, and networking, which faces more limitations than when located in Seoul." Accordingly, the Ministry of Health and Welfare and the NPS are promoting a plan to have alternative investment fund managers work regularly at a 30-seat 'Smart Work Center' in Gangnam-gu, Seoul, but this is seen as insufficient as a fundamental solution.
Realizing a move to Seoul is not easy. According to Article 27 of the National Pension Act, the department overseen by the Fund Director must be located in Jeollabuk-do. The official said, "There is significant local concern interpreting even the establishment of the Smart Work Center as a step toward relocating the headquarters, and legal amendments are required for relocation. However, lawmakers sensitive to local public opinion are opposing the move."
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