South Korea's National Pension Service (NPS) expanded its Jeonju-based incentive system to domestic infrastructure investment asset manager selection, following last month's introduction of similar incentives for domestic stocks and bonds. The fund operator added a 1-point scoring advantage for firms with offices in Jeonju, where NPS headquarters relocated. The policy stems from President Lee Jae-myung's directive late last year to provide incentives to regional asset managers in pension fund allocation. The expansion reflects South Korea's broader push to decentralize financial industry operations beyond Seoul.
NPS Adds 1-Point Scoring Advantage for Jeonju-Based Infrastructure Investment Managers
The National Pension Service Fund Management Headquarters introduced a 1-point incentive for asset managers with offices in Jeonju in both batch review and case-by-case review methods for domestic infrastructure investment selection. In the batch review process, which combines proposal evaluation and oral examination results in a 50-50 weighted sum to rank top managers, the 1-point Jeonju office advantage was added to both evaluation components. The case-by-case review evaluation form, used to assess individual investment candidates based on specific deal characteristics, also received the 1-point regional office incentive. The Jeonju office criterion is the only scoring advantage in the domestic infrastructure investment evaluation framework.
Domestic Stocks and Bonds Incentives Introduced Last Month
Last month, NPS added the same 1-point Jeonju office advantage to domestic stock and bond asset manager selection criteria. For domestic stocks, the total scoring advantage increased from 2 points to 3 points, with existing incentives including 1 point for stewardship code adoption, 0.5 points for detailed stewardship code operation guidelines, and 0.5 points for responsible investment policy establishment. Domestic bond selection previously offered 2 points total for responsible investment policy or guidelines and responsible investment organization or personnel, which expanded to 3 points with the regional office incentive.
Policy Originates from Presidential Directive Late Last Year
The Jeonju office 1-point system emerged six months after President Lee Jae-myung directed NPS to examine incentive measures for regional asset managers in pension fund allocation late last year. NPS Chairman Kim Sung-joo actively encourages financial firms to establish Jeonju offices. Woori Bank, reselected as a foreign currency custodian bank this year, plans to open a dedicated foreign exchange office near the pension fund headquarters.
FAQ
What did South Korea's National Pension Service do regarding infrastructure investment manager selection?
The National Pension Service added a 1-point scoring advantage for asset managers with offices in Jeonju in domestic infrastructure investment selection, applying to both batch review and case-by-case review evaluation methods.
Why did NPS expand the Jeonju office incentive to infrastructure investment?
The expansion follows President Lee Jae-myung's directive late last year to provide incentives to regional asset managers in pension fund allocation, part of South Korea's financial industry decentralization policy.
