Korea’s military fund taps ex-president of Woori Financial as CIO

South Korea’s Military Mutual Aid Association (MMAA), which managed 10.4 trillion won ($7.5 billion) in assets as of the end of 2023, has tapped the Woori Financial Group Inc. business support division's former President Park Hwa-jae as the new chief investment officer (CIO) for the fund's financial investment division.

On June 27, the retirement fund for military personnel determined the nomination of new CIO, who will oversee the fund’s equity and debt investments in private and public markets, banking sources said on Friday.

Park, who competed with MMAA’s current CIO Lee Sang-hee and KB Insurance Co.’s former CIO Han Seung-chul for the position, will serve for three years starting in July with an option for a one-year extension.

His 44-year-long career has been focused on sales at Woori Financial Group, Korea’s fourth-largest financial services holding company. Park’s roles include in housing finance, credit and as CEO of Win P&S Co., a real estate management arm wholly owned by the bank.

MMAA has two separate CIOs for its financial investment and construction divisions. The financial investment chief represents the retirement fund’s overall asset management strategy.

The construction division CIO is Kim Yong-seok, who became chief in August 2023. He oversees real estate and infrastructure investment.

The military fund allocated 8 trillion won to alternative investment among its 10.4 trillion won in assets under management (AUM) as of end-2023. Some 46% of its alternative assets are in overseas markets.

The fund posted an 8.2% investment return last year comprised of a 9.2% return on alternative assets, 9.7% on listed stocks and 2.1% on public bonds.

Write to Byeong-Hwa Ryu at hwahwa@hankyung.com
 

Jihyun Kim edited this article.