With applications now closed for the chief investment officer (CIO) of the National Pension Service's (NPS) Fund Management division — a post often called the "president of capital markets" — a large number of former CIOs from major pension funds and mutual aid associations have applied, according to industry sources. Given that the position oversees more than 1,900 trillion won in assets, the industry expects dozens of applicants to compete fiercely for the role.
According to investment banking (IB) industry sources Wednesday, applications for the NPS Fund Management CIO post, which closed that day, drew a large number of former pension fund and mutual aid association CIOs. They include Heo Sung-mu, former CEO of Korea Growth Investment, Park Cheon-seok, former CIO of the Korean Federation of Community Credit Cooperatives (KFCC), and Lee Kyu-hong, former CIO of the Teachers' Pension. In addition, Lee Hoon, former CIO of the Korea Investment Corporation (KIC), is also mentioned as a candidate for the NPS CIO post.
The selection process moves from document screening to interviews and a recommendation by the recommendation committee. NPS Chairman Kim Sung-joo will then make the final appointment. The CIO term is two years, with possible one-year extensions. The current CIO, Seo Won-joo, completed his two-year term followed by a one-year extension at the end of last year, but served an additional six months as the appointment of his successor was delayed.
Heo, a first-generation figure in Korea's financial engineering field, has extensive investment experience in structured finance and alternative investments. After joining Tongyang Group, he served as a department head in the corporate finance team at Hannuri Investment & Securities (now KB Securities), head of the products division at Meritz Securities, and head of the strategic management division at KDB Asset Management, before serving as CIO of the Korea Scientists and Engineers Mutual-aid Association from 2019. He is regarded as someone with a high level of understanding across multiple asset classes, having worked in both the securities industry and as a mutual aid association CIO.
Park served as head of fund management at the KFCC central council from April 2020, overseeing about 70 trillion won in assets. Beginning at Samsung Life Insurance's asset management division, Park broadened his management experience in various areas, serving as a senior fund manager at Samsung Asset Management, CIO of the bond management division at ING Asset Management, head of the investment strategy team at the Government Employees Pension Service, and head of the asset management division at Heungkuk Life Insurance. In 2023, he applied for the NPS CIO post and made the final shortlist of three candidates but lost out to Seo Won-joo at the time.
Lee Kyu-hong led the Teachers' Pension from 2019 to 2022, after serving as CIO at PCA Investment Trust Management and NH-Amundi Asset Management, and as CEO of Ascendas. Lee Hoon is also mentioned as a strong candidate. He worked as an analyst at Korea Investment & Securities, Woori Investment & Securities, and Samsung Securities, and after joining KIC in 2014, he held positions including head of corporate analysis, head of the strategic research team, head of the asset allocation team, head of the management strategy division, and head of the future strategy division. He served as CIO at KIC from 2022 until recently.
The market regards this NPS Fund Management CIO appointment as having entered a more critical phase than ever before. While the NPS fund size has surpassed 1,900 trillion won and is expected to post a record-high return this year, major challenges have piled up, including mid-term asset allocation centered on adjusting the investment portfolio in areas such as domestic stocks, and currency hedging for overseas investments amid a sharp rise in the won-dollar exchange rate.
"The NPS fund size is growing and macroeconomic uncertainty is expanding," an IB industry official said. "The CIO's comprehensive vision is expected to become more important than ever."
