Targeting both profitability and public value through the National Growth Fund and other investments
Lead manager’s hacking incident: “Measures must be put in place to prevent a recurrence”
The Fund Investment Pool, which has become a key asset management platform for government funds and public institutions, is moving to boost returns by significantly expanding alternative investments, including venture funds. The government also signaled a sweeping overhaul of its oversight in response to a recent security breach at Mirae Asset Global Investments, the lead manager.
Cho Yongbeom, Vice Minister of Planning and Budget, delivers opening remarks while chairing the 4th Fund Asset Management Policy Committee meeting at the Korea Deposit Insurance Corporation in Jung-gu, Seoul, on the morning of November 13. Ministry of Planning and Budget.
On Nov. 13, the Ministry of Planning and Budget held the 4th Fund Asset Management Policy Committee meeting, chaired by Deputy Minister Cho Yongbeom, to focus on the suitability of new alternative investment products and measures to strengthen information security management. The committee reviewed the suitability of eight new alternative investment products, including the National Growth Fund, reaffirming its policy of diversifying investments. As funds flowed mainly into the National Growth Fund and the Innovative Growth Venture Fund, the scale of alternative investments surged to 1.209 trillion won as of October this year. Referring to the Fund Investment Pool’s status, with assets under management exceeding 90 trillion won, Deputy Minister Cho stressed that “fund management should maintain stability and profitability while also serving as seed capital to promote private investment.”
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Meanwhile, the security vulnerabilities at the lead manager responsible for managing the growing pool of funds came under sharp criticism. The committee reviewed the circumstances of and response to the recent breach involving the website of a depository institution associated with Mirae Asset Global Investments, and discussed fundamental measures to strengthen information security. Members pointed out that lead managers are required to demonstrate a high level of accountability and reliability, even when they are private institutions, because they handle public funds. Expressing concern about the growing cyber threats amid advances in artificial intelligence, they urged the lead manager to use the incident as an opportunity to reassess its company-wide information security system and take every measure to strengthen security and prevent a similar incident from happening again.
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