21 Out of 52 Retirees Reemployed at Fund Business Partners Over Two Years
National Pension Service: "Strengthening Conflict of Interest Prevention"
It has been revealed that around 40% of former employees who managed funds at the National Pension Service have been reemployed at securities firms or asset management companies that previously conducted business with the National Pension Service.
According to data received by Assemblywoman Kim Sunmin of the National Assembly’s Health and Welfare Committee from the National Pension Service (hereinafter referred to as the Service) on October 24, among 52 fund management employees who retired over the past two years, from October 2023 to the present, 21 individuals (40.4%) found new positions at institutions that conduct business with the fund.
These business partner institutions are officially selected by the National Pension Service to conduct transactions for fund management. They include financial institutions such as securities firms and asset management companies, as well as law firms providing legal advisory services.
The Service monitors the reemployment status of retired employees for two years after their departure in order to prevent conflicts of interest.
If a retired employee takes on work directly related to fund management within one year of leaving, transactions with the reemployment institution are restricted for six months. In cases where there are concerns about conflicts of interest with the institution where the retiree is reemployed, measures such as work exclusion, strengthening of voting requirements, and adjustment of evaluation grades are implemented.
However, among the 21 individuals reemployed at business partner institutions over the past two years, only two were subject to the six-month transaction restriction.
Critics point out that even if a retiree does not perform directly related work, moving immediately to a business partner institution does not fully eliminate concerns about conflicts of interest.
In response, the Service announced that it has strengthened internal controls by introducing a new regulation in February this year prohibiting private contact with retired employees involved in voting rights duties, and that it will continue efforts to prevent conflicts of interest.
Assemblywoman Kim Sunmin stated, "There needs to be institutional mechanisms to minimize conflicts of interest and the practice of preferential treatment for former officials after retirement," adding, "In addition, measures should be put in place to ensure that talented fund management professionals receive appropriate treatment and can continue to work at the Service."
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