Suspicions were raised that there was a preliminary public offering with private asset managers in t..

Suspicions were raised that there was a preliminary public offering with private asset managers in the process of making decisions on alternative investments being entrusted to the private sector by the National Pension Service. The National Pension Service has launched an internal investigation to find out the facts.

According to the financial investment industry on the 23rd, the National Pension Service’s audit office will start a fact-finding investigation from that day after receiving a report that A, a compliance officer, influenced the vote of the alternative investment committee through a preliminary public offering with a specific management company.

In July, the National Pension Service decided not to replace the consignment management company (GP) of the office building “Yeoksam Center Field” through a vote by the Alternative Investment Committee. Centerfield is an office building with a valuation of 4 trillion won located in Teheran-ro, Gangnam, Seoul.

Initially, the National Pension Service’s real estate investment office attempted to replace the Centerfield consignment management company from Igis Asset Management to Koramco Asset Management.

However, the Alternative Investment Committee, which includes outside members, held it back through a vote.

In the process, the National Pension Service’s compliance support office was found to have conveyed its opposition to the proposal to replace the management company. The compliance office reportedly suggested that legal problems could arise if the management company is replaced without the actual sale of assets to pay success fees and equity profits.

As a result of the vote, the Alternative Investment Committee decided not to replace the Centerfield manager. The direction was tilted toward the sale of assets promoted by Igis Asset Management.

The alternative investment committee is headed by the head of the National Pension Fund Management Division (CIO), and consists of three internal members and three external members. Compliance officers do not participate in the Alternative Investment Committee as members.

In this investigation, the audit office is expected to examine whether the compliance officer conducted a preliminary public offering with the Igis Asset Management to influence the vote of the alternative investment committee. Compliance officers are in charge of checking compliance with laws and regulations in the fund management process and monitoring conflicts of interest among executives and employees.

Currently, the National Pension Service has been issued by the head of the real estate investment office and the head of the compliance support office due to the controversy over the center field.

The National Pension Service will examine the matter until the 8th of next month. If allegations are found in the factual investigation, they can be converted into a formal audit. Fact-finding is the nature of a preliminary investigation conducted before an audit.

The National Pension Service said it could not confirm the contents related to the internal investigation.