[Edaily Marketin JI YEONG-EUI Reporter] The National Pension Service’s Fund Management Headquarters has placed the head of its Real Estate Investment Division on administrative leave. While the National Pension Service did not disclose the reasons for the personnel action, industry observers view it as a disciplinary measure in response to the failed attempt to replace the general partner (GP) managing “Centerfield,” a prime office building in the Gangnam area. As it has been confirmed that the NPS Audit Office pointed out potential conflicts of interest with Koramco Asset Management, the interpretation is that the Real Estate Investment Division’s push to replace the GP—which was deemed overly aggressive—led to personnel action against the key responsible official.

According to investment banking (IB) industry sources on the 15th, the National Pension Service’s Fund Management Headquarters announced personnel changes that day, placing the head of the Real Estate Investment Division—who oversees domestic and international real estate investment operations—on administrative leave. The head of the Real Estate Investment Division holds a key position responsible for reviewing, executing, and managing the National Pension Service’s domestic and international real estate investments. It is unusual for a division head-level executive within the Fund Management Headquarters to be placed on administrative leave.

This personnel move is interpreted as a fallout from the recent failure to replace the general partner (GP) for the Centerfield project. Despite internal controversy, the National Pension Service pushed ahead with a plan to switch Centerfield’s GP from Aegis Asset Management to Koramco Asset Management, but the plan was ultimately blocked by the Alternative Investment Committee. After designating Koramco Asset Management as the preferred candidate for the new GP, the proposal was rejected at the final decision-making stage, bringing the Real Estate Investment Division’s preliminary review and decision-making process under scrutiny.

The key issue was a structure that provided the existing asset manager with a large success fee and a share of profits even though the actual sale of the assets had not yet taken place. Market observers noted that if the asset manager were replaced mid-term, a settlement issue totaling around 100 billion won—based on the current appraised value—could arise. As legal and economic concerns surfaced at the AIC level, controversy also grew over whether sufficient risk assessments had been conducted at the operational level. Ultimately, criticism arose that the Real Estate Investment Division had lost both its moral standing and practical advantage by pushing through the replacement too aggressively.

In particular, it has been revealed that the National Pension Service’s Audit Office pointed out potential conflicts of interest with Koramco Asset Management during the Grand Investment Committee process. This was influenced by suspicions raised both internally and externally regarding Koramco Asset Management’s hiring of a former high-ranking National Pension Service official as the head of its Jeonju office, which coincided with the timing of the push to replace the GP.

Industry observers view this temporary reassignment not merely as a job rotation but as a signal that the Real Estate Investment Division’s overall decision-making process is under scrutiny. With the failure to replace Centerfield’s GP, the process of selecting Koramco as the preferred bidder, and the re-audit of the Real Estate Investment Division all occurring simultaneously, the market’s scrutiny of the National Pension Service’s alternative investment governance is expected to intensify.

The National Pension Service stated, “We cannot confirm matters related to personnel.”