Financial companies are increasingly establishing offices in Jeonju, where the National Pension Service (NPS) is located. The NPS has decided to award additional points in its evaluation of asset management firms based on their operational base in Jeonju, prompting financial firms to expedite their move to the city.
According to the financial sector and the NPS on August 11, NH Nonghyup Financial plans to open its Jeonju office for NH-Amundi Asset Management on September 1. This follows the establishment of bases in Jeonju by KB, Shinhan, and Woori Financial, with NH Nonghyup also joining the trend. The company aims to build an 'NH Financial Hub' centered around the Jeonju office and expand collaboration with the NPS.
IBK Asset Management, a subsidiary of IBK Industrial Bank, also opened its Jeonju office on the same day. IBK Asset Management is a comprehensive asset management firm wholly owned by IBK Industrial Bank.
The influx of financial firms into Jeonju is largely due to changes in the NPS's evaluation criteria for asset management firms. In June, the NPS introduced a new criterion for selecting domestic equity and bond management firms, granting an additional point to those with operational bases in Jeonju. This change was implemented about six months after President Lee Jae-myung instructed the NPS to consider providing incentives to regionally based asset management firms during the asset allocation process.
As of the end of May this year, the NPS manages a fund totaling 1,848 trillion won, with 959 trillion won entrusted to domestic and foreign asset management firms. Being selected as a management firm for the largest institutional investor in the country is directly linked to the firm's performance. Industry experts note that even a single additional point can significantly impact rankings, which can be determined by fractional score differences.
Major asset management firms have already begun their moves to Jeonju. Shinhan Asset Management opened its Jeonju office in February, while KB Asset Management moved into the Jeonbuk KB Financial Town in July. Woori Asset Management has also established a base in Jeonju.
International firms are not exempt from this trend. Blackstone and PIMCO already have offices in Jeonju, and BlackRock and Starwood Capital opened their Jeonju offices this year.
A source in the financial sector stated, "For financial firms, securing a connection with the NPS in Jeonju is becoming a significant competitive advantage. It is highly likely that more financial companies will establish local bases to strengthen collaboration with the NPS in the future."
* This article has been translated by AI.
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