Kim Yong-jin officially appointed as NPS’ new CEO, likely to drive decision over CIO status

Kim Yong-jin, the former second vice finance minister of President Moon Jae-in’s government between mid-2017 and 2018, has been chosen as the National Pension Service’s new chief executive officer, the Ministry of Health and Welfare announced on August 31.

 

South Korea's pension fund has finally found a CEO after eight months of vacancy. Korean Investors earlier reported that Kim had been nominated as the CEO of the Korean pension fund after his predecessor Kim Sung-joo left the NPS in January to run for April general elections.

“The new CEO comes with years of experience in public sectors and social welfare fiscal policies. We believe that his expertise and leadership will contribute greatly to the NPS,” the health ministry said.

Kim, 59, will serve as the 17th CEO of the world’s third-largest pension fund which manages almost 725 trillion won ($613 billion). The incoming CEO is set to serve a three-year term, which could be extended for a year based on his performance.

In addition to serving numerous roles within the Ministry of Economy and Finance, Kim has previously worked as CEO of utility Korea East-West Power Co. Ltd.

Meanwhile, the appointment of a new CEO may expedite the decision on whether if the pension fund's chief investment officer will serve a consecutive term or be replaced.

The CIO title is currently held by Ahn Hyo-joon, whose two-year term is set to end on October 8. Under the National Pension Act and internal guidelines, a CIO can serve a two-year term and consecutively serve another year based on his or her performance.

Once Ahn's consecutive-term status is determined, it will help facilitate NPS’s plans to increase global investment staffing which has been led by Ahn, alongside additional appointments.

Write to Jung-hwan Hwang at jung@hankyung.com