[Edaily Marketin KIM SUNG-SOO Reporter] The selection process for the next Chief Investment Officer (CIO) of the Korea Investment Corporation (KIC), which manages 350 trillion won in assets, is entering its final stages.

With interviews for the four final candidates completed and background checks currently underway, attention is focused on whether the position will be filled through an internal promotion or by recruiting an external expert. The final candidate is expected to be announced early next month.

Background Checks

Underway

After Interviews

with

Four Candidates… Final Announcement Expected Early Next Month

According to the financial investment industry on the 26th, KIC has completed

interviews

with

the four

final

candidates

(shortlist) for the next CIO and is currently conducting

background

checks. The CIO selection process involves document submission and interviews, followed by deliberation by the Steering Committee, personnel vetting, and appointment by the president.

The shortlist includes: △Shin Min-sik, former Head of the Investment Business Division (CIO) at Hanwha Life Insurance; △Shin Yong-seon, Head of the Alternative Investments Division at KIC; △Oh Gyu-chan, former Head of the Global Investment Management Division at Shinhan Asset Management; and △Cho Sang-woo, former CIO at iM Life. The competition features three external candidates with investment experience in the insurance and asset management industries, along with one internal candidate from KIC.

Shin Yong-seon, the sole internal candidate, has worked at KIC since its inception and is known to have a deep understanding of the organization and strong internal support. He is also regarded as having a solid international network, thanks to his experience working at the London office. Until the personnel reshuffle earlier this year, he served as Head of the Securities Management Division, leading the management of traditional assets, and currently heads the Alternative Investments Division.

If an internal promotion occurs, the candidate’s understanding of the organization and ability to ensure operational continuity are cited as key strengths. Conversely, if an external candidate is appointed, they could bring experience gained at insurance companies and asset management firms to the organization. Ultimately, the key variable is whether KIC will prioritize organizational continuity or external expertise.

The CIO appointment process involves a review of applications, interviews, deliberation by the Steering Committee, and a background check, followed by the appointment by the president. Previously, in July, KIC’s CIO recruitment process ended without a final appointment. This appears to be the result of growing controversy after it was reported that Lee Kyung-jik, former director at the National Pension Service, had been tentatively selected just before the interviews were scheduled to take place. Since this marks the first time the CIO recruitment process has been abandoned since KIC’s establishment in 2005, observers suggest that this selection process should also be closely monitored until a final decision is reached.

As

KIC Aims to Become a “Korean-Style Temasek”… the CIO’s Role Grows More Important

The challenges facing the new CIO are no small task. KIC has been preparing to introduce an “Integrated Portfolio Management System” (TPA), which includes a benchmark portfolio, by the end of the year. The goal is to generate long-term, stable returns by implementing an investment strategy that prioritizes the balance of the overall portfolio rather than individual assets. Consequently, the CIO’s ability to oversee all asset classes within KIC has become even more critical than before.

Furthermore, KIC’s role is expanding beyond overseas investments to include investments in domestic strategic industries. To develop KIC into a “Korean-style Temasek,” the government is pushing for an amendment to the Korea Investment Corporation Act that would establish a separate “Domestic Strategic Account” and entrust KIC with investments not only overseas but also in domestic strategic industries such as semiconductors, artificial intelligence (AI), and advanced manufacturing. Consequently, the range of competencies required of the CIO—including an understanding of domestic industries and financial markets, as well as collaboration with government and private investment institutions—is bound to expand.

Securing talent is also a challenge. As of the end of June, KIC’s assets under management totaled $243.2 billion (approximately 326 trillion won). The total workforce, including the Seoul headquarters and five overseas offices, stands at 353, of whom 174 are investment professionals. Concerns have been raised that the recent exodus of some staff due to fears of relocation to a regional office could place a burden on identifying new investment opportunities and managing existing assets.

An official in the financial investment industry stated, “If the government intends to develop KIC into a ‘Korean-style Temasek,’ it must prioritize the organization’s competitiveness,” adding, “Under these circumstances, industry interest is growing in whether the new leader—who will determine the direction of a 350 trillion won sovereign wealth fund—will be selected from within the organization or recruited from outside.”