Samsung Asset Management, South Korea's largest asset manager, announced on the 8th it is opening a Jeonju office after posting a job listing for institutional marketing support staff. The move follows the National Pension Service's decision last month to award bonus points to asset managers with offices in Jeonju, the fund's headquarters city. Major domestic asset management firms are establishing Jeonju operations to gain competitive advantage in securing mandates from the National Pension Service, which outsources 866 trillion won of its 1,670 trillion won fund as of April this year.
The Jeonju office will handle close marketing to the National Pension Service, coordinate with fund-related departments, and serve as a liaison with the Seoul headquarters for administrative support. Samsung Asset Management is prioritizing local hires, offering preference to residents of North Jeolla Province in its recruitment process. The office will begin formal operations once the hiring process concludes.
KB and Woori Financial Groups Open Jeonju Offices
KB Asset Management held an opening ceremony on the 8th in Jeonju Innovation City, launching its local office operations. Woori Financial Group has scheduled its Woori Financial Town opening ceremony for the 29th of this month. Shinhan Financial Group is already operating a financial hub in North Jeolla Province.
Hana Financial Group and NH Nonghyup Financial Group have both announced plans to establish financial hubs including their asset management subsidiaries, meaning all five major financial holding company-affiliated asset managers will have Jeonju operations. Hanwha Asset Management, which is not part of a financial holding group, has also formalized its office opening plans.
National Pension Service Adds Location-Based Bonus Points
The National Pension Service Fund Management Headquarters introduced a new evaluation criterion last month that awards 1 bonus point to asset managers with offices in the fund management location when selecting domestic stock and bond managers. The National Pension Service is South Korea's largest institutional investor, outsourcing 866 trillion won of its 1,670 trillion won fund to domestic and international asset managers as of April this year.
In the outsourcing market, performance and risk management capabilities determine rankings by decimal points, making the 1-point bonus a decisive variable that can reverse selection results.
Industry Raises Operational Efficiency Concerns
Concerns persist about organizational effectiveness. Industry observers note that Seoul-based top investment talent may avoid regional postings, potentially rendering local offices nominal. Inefficiencies from dual office operations and limitations in local talent supply remain challenges to address.
An asset management industry official stated, "The influence of 1 bonus point is so absolute that there's no way to avoid going to Jeonju," adding, "Rather than relocating actual investment operations or core research functions to the region, most firms will likely station one or two institutional sales personnel on-site while having key personnel commute between Seoul and Jeonju."
FAQ
Why are asset management firms opening Jeonju offices?
The National Pension Service introduced a 1-point bonus last month for asset managers with offices in Jeonju when selecting domestic stock and bond managers. This bonus point can be decisive in competitive selection processes where performance metrics differ by decimal points.
What role will Samsung Asset Management's Jeonju office serve?
The office will handle close marketing to the National Pension Service, coordinate with fund-related departments, and serve as a liaison with the Seoul headquarters for administrative support. Samsung Asset Management posted a job listing on the 8th for institutional marketing support staff to work at the office.
