Hanwha Asset Management will open an office in Jeonju next month near the National Pension Service (NPS) Investment Management headquarters. While real estate-focused asset managers have mostly set up in Jeonju until now, equity and bond managers are also moving to push regional relocations. Observers say the NPS incentive of awarding bonus points to firms with Jeonju offices when selecting outsourced managers is actually leading to the opening of local offices.
According to the investment banking (IB) industry Thursday, Hanwha Asset Management is in final preparations with a target of opening its Jeonju office next month. Hanwha Asset Management plans to staff the local office with more than 10 personnel in total, including its equity and bond management division and institutional marketing.
Hanwha Asset Management plans to use the Jeonju office as a base for expanding regional finance. It will also strengthen connections among financial firms within the Hanwha Financial network. "Beyond office space, we plan to set up a lounge and other facilities to use it as a channel for smooth communication with the NPS and the local community," a Hanwha Asset Management official said.
The bonus points awarded by the NPS Investment Management headquarters for Jeonju offices reportedly had a considerable influence on Hanwha Asset Management's decision. In its selection criteria for domestic equity and bond outsourced managers released on the 19th of this month, the NPS Investment Management headquarters added a new "customer communication" category. The category carries 1 point and applies to managers with a "base in the location of the Investment Management headquarters." It is interpreted as intended to provide incentives to managers that have business bases such as local offices, enabling smooth communication with the Investment Management headquarters located in Jeonju, North Jeolla Province.
The provision of bonus points following the NPS Investment Management headquarters' relocation to Jeonju came in response to requests from managers over time. Kim Sung-joo, chairman of the NPS, said at a meeting with asset managers earlier this year that he would continue to review measures to provide more opportunities to managers with regional offices. Managers had also offered opinions that substantial benefits needed to be provided for opening local offices.
The market is viewing Hanwha Asset Management's opening of a local office as significant. Previously, real estate managers such as IGIS Asset Management, Mastern Investment Management, Koramco Asset Management, and Pebblestone Asset Management had opened Jeonju offices, but this is the first time a manager investing in equities and bonds has established a presence in Jeonju. As bonus points are provided in the outsourced manager selection process, more managers are expected to set up local offices following Hanwha Asset Management.
Global asset managers' relocations to Jeonju also continue. Starwood Capital will set up a local office next month. In addition to Goldman Sachs, the world's largest asset manager BlackRock and Allianz Global Investors have opened Jeonju offices and are conducting collaboration with the NPS across all asset classes. Blackstone entered Jeonju in 2024 and is recently pursuing an expanded office relocation. An IB industry official said, "As bonus points are provided in the outsourced manager selection process, the opening of regional offices by managers is expected to increase further going forward."
With domestic and foreign asset managers gathering in Jeonju, observers say Jeonju is transforming into a financial hub. President Lee Jae-myung also said at a press conference on the 8th of this month, while explaining balanced regional development policy, "As many companies and financial institutions are entering Jeonju, we intend to achieve balance through intensive attention and support."
