[Edaily Marketin JI YEONG-EUI Reporter] The selection process for the Chief Investment Officer (CIO) of the National Pension Service (NPS)—a position often referred to as the “President of the Capital Markets”—is dragging on. It has been seven weeks since the shortlist was narrowed down to four final candidates and the vetting process began, yet a final decision has not been made. While the vetting of the candidates has been completed, observers say the decision-makers are still deliberating over the final choice.

According to investment banking (IB) industry sources and relevant agencies on the 7th, the National Pension Service is in the final stages of the selection process for its next CIO, with four candidates remaining: Park Cheon-seok, former Head of the Fund Management Division at the National Federation of Saemaul Credit Unions; Lee Do-yoon, former Head of the Asset Management Division at the Yellow Umbrella Mutual Aid Association; Lee Kyu-hong, former Head of the Fund Management Unit at the Private School Teachers’ Pension Service; and Kim Ho-jin, former Head of the Fund Management Division at the National Federation of Fisheries Cooperatives.

The National Pension Service requested that the final candidates submit documents related to background checks by July 27 and has since begun a full-scale vetting process. Although the process has now entered its seventh week, the outcome remains unclear. All four final candidates have experience overseeing asset management at institutional investors such as pension funds or mutual aid associations, and it is reported that a comprehensive comparison and review is underway, taking into account their domestic and international asset management experience, understanding of overseas investment assets, and organizational leadership skills.

Observers note that Chairman Kim Seong-ju’s deliberations are a key factor in the delay of the selection process. Reports indicate that the process is taking time not so much because of the vetting itself, but rather because of the need to identify the most suitable candidate to oversee the National Pension Service’s fund management in the future. Although the shortlist was narrowed down early on, the delay in making a final decision has left the chairman’s choice as the de facto final variable in the process.

As the leadership transition drags on, gaps are becoming apparent in key external schedules. The new NPS CIO was supposed to attend this week’s investor relations (IR) event in London led by Lee Chan-jin, Chairman of the Financial Supervisory Service; however, due to the delay in the final appointment, the NPS’s current Head of Strategy is scheduled to attend in his place. Current CIO Seo Won-ju has continued to perform his duties even after his term expired, in accordance with the Public Institutions Operation Act, until a successor is appointed. However, it was determined that it would be inappropriate for a CIO whose term has expired to appear at major external events such as overseas investor relations (IR) sessions, so a division head-level official is filling in for him.

The NPS CIO oversees the investment strategy and asset allocation for a large-scale portfolio encompassing domestic and international stocks, bonds, and alternative investments. Given the significant impact on the market—earning the title “President of the Capital Markets”—the financial investment industry is closely watching the new leader’s investment philosophy and direction for organizational management. In particular, with growing demands for both expanding the role of the domestic capital market and improving long-term returns, the next CIO’s judgment and leadership are considered crucial.

However, the selection process is understood to be in its final stages. Based on a synthesis of reports, the next CIO could be officially announced as early as this week or next week. Since the National Pension Service will begin preparing in earnest for parliamentary oversight hearings in mid-September—and the new CIO will need to personally address issues related to the Fund Management Division during those hearings—there is a sense within the organization that further delaying the appointment is no longer feasible.