Samsung, Mirae Asset, KB vie for $44.7 bn pension investment pool management

South Korea has opened bidding for the management of its 62 trillion won ($44.7 billion) state pension investment pool, pitting two of the country’s largest asset managers against a securities firm.

Samsung Asset Management Co., Mirae Asset Global Investments Co. and KB Securities Co. have participated in the race to become the lead managers of the fund, according to the Ministry of Economy and Finance and the Public Procurement Service.

The final decision will be made after a presentation round on Sept. 29, with two winners to be appointed to a four-year mandate starting in January 2026.

The pool, created in 2001 as Korea’s first outsourced chief investment officer (OCIO) model, combines surplus cash from public institutions and pensions into professionally managed portfolios.

Its size ballooned to more than 62 trillion won as of last year from 1.9 trillion won in 2002.

MANAGEMENT RIGHTS LIMITED TO ASSET MANAGERS SO FAR

Until now, management rights were limited to asset managers, leaving the market effectively controlled by Samsung Asset, Mirae Asset and Korea Investment Management Co.

But earlier this year, the finance ministry revised rules to allow securities firms holding private fund management licenses to participate, opening the door for KB Securities to mount a challenge.

Mirae Asset and Samsung submitted bids early, while KB Securities secured its license this month to join the contest.

NH Investment & Securities Co., another leading brokerage, was previously viewed as a strong contender but failed to gain regulatory approval from the financial authorities.

Officials said the evaluation will weigh the size of contenders’ public and private fund operations alongside their financial stability.

“Securities houses already have experience managing specific funds such as the Housing and Urban Fund,” said a government official. “It is difficult to predict the outcome, since the top two candidates will be selected regardless of sector.”

Write to Jeong-Min Nam and Seok-Cheol Choi at peux@hankyung.com

In-Soo Nam edited this article.