Мобильный 1 Add news
March 2010
April 2010
May 2010June 2010July 2010
August 2010
September 2010October 2010
November 2010
December 2010
January 2011
February 2011March 2011April 2011May 2011June 2011July 2011August 2011September 2011October 2011November 2011December 2011January 2012February 2012March 2012April 2012May 2012June 2012July 2012August 2012September 2012October 2012November 2012December 2012January 2013February 2013March 2013April 2013May 2013June 2013July 2013August 2013September 2013October 2013November 2013December 2013January 2014February 2014March 2014April 2014May 2014June 2014July 2014August 2014September 2014October 2014November 2014December 2014January 2015February 2015March 2015April 2015May 2015June 2015July 2015August 2015September 2015October 2015November 2015December 2015January 2016February 2016March 2016April 2016May 2016June 2016July 2016August 2016September 2016October 2016November 2016December 2016January 2017February 2017March 2017April 2017May 2017June 2017July 2017August 2017September 2017October 2017November 2017December 2017January 2018February 2018March 2018April 2018May 2018June 2018July 2018August 2018September 2018October 2018November 2018December 2018January 2019February 2019March 2019April 2019May 2019June 2019July 2019August 2019September 2019October 2019November 2019December 2019January 2020February 2020March 2020April 2020May 2020June 2020July 2020August 2020September 2020October 2020November 2020December 2020January 2021February 2021March 2021April 2021May 2021June 2021July 2021August 2021September 2021October 2021November 2021December 2021
1234
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
News Every Day |

Move to hinterland triggers brain drain at Korea’s mega pension fund

November 21, 2021

By Cynthia Kim, Jihoon Lee and Yena Park

SEOUL (Reuters) – Earlier this year, Lee left her fund management job at South Korea’s national pension fund, the world’s third-largest, fed up with long commutes between her home in Seoul and her office in Jeonju, 200 kilometers away.

For four years, Lee lived in a studio apartment in Jeonju, a city of 658,000, on weekdays, and traveled back to Seoul for the weekend. She feared her family would break up if she didn’t make the hard decision to quit.

Lee is one of some 140 money managers who has left the 930.5 trillion won ($788 billion) National Pension Service since 2016, shortly before it moved to Jeonju, a sleepy provincial capital, as part of the government’s relocation of major agencies away from the capital Seoul.

That is almost half the 320 currently working at the fund’s investment arm, an alarming brain drain for the main public retirement plan of Asia’s fourth-largest economy and a major investor in Korean blue-chips such as Samsung Electronics and Hyundai Motor Co..

“Staying in Jeonju for the weekdays, I felt I was missing out on so much of my life, I couldn’t stand it anymore and decided to head up to Seoul,” said Lee, who now works for an asset manager based in Seoul’s financial district and agreed to be identified only by her surname.

With assets valued at nearly half the nation’s gross domestic product, the NPS manages pensions for private sector workers and self-employed South Koreans.

A massive wave of retirements due in coming years in the world’s fastest aging society has raised the stakes for management at the fund.

Over the past five years, however, the NPS has only filled 57% of jobs it opened.

An NPS official said that partly reflects the greater number of openings as the fund grows investments but acknowledged the issues around the relocation.

“Although it has stabilised a lot compared to before our relocation to Jeonju, the issue regarding manpower seems to have re-emerged because we recently increased job openings in a large scale which seemingly pushed up the relative vacancy rate,” the official told Reuters in response to queries.

“As our overseas investment expands, so are opportunities to work abroad, and efforts are being made to motivate talent to stay in service by improving working conditions, and we also have talent development programmes.”

To plug staff shortages, it removed the mandatory one-year work experience requirement for the first time from its job postings in September and began offering opportunities to work abroad, even to domestic equity fund managers.

The NPS’s annualised investment return for 2020 was 9.7%, below 25.15% for Japan’s GPIF in fiscal 2020 and 20.4% at Canada Pension Plan Investment Board.

That partly reflects the more conservative nature of its investments, fund managers say, which also means it is less exposed during downturns.

However, the NPS now plans to expand its overseas investment allocations to 50% by 2024 from 34% in 2019.

It has 30 staff across branches in New York, London and Singapore as of 2020, far fewer than the 351 staff at Canada’s CPPIB and 252 at Norway’s NBIM in their various overseas offices, 2020 data from the NPS shows.

More ambitious returns would demand a deeper pool of investment talent, which has become harder to attract and retain since the relocation in 2017.

“When I was a manager there about eight to 10 applicants used to compete for one fund manager position, after we screened out inexperienced ones, and that’s when the fund’s pay level was even lower,” said Hong Chun-uk, who resigned from a senior fund manager position at the NPS in 2015.

He left the fund after it announced its relocation and has since become an economist at Seoul-based brokerage.

BIG MONEY, SMALL TOWN

The NPS is one of about 150 state agencies and public corporations that have moved out of Seoul since 2005, with another batch of about 100 institutions, including part of the National Assembly, also planned for relocation.

The major shift was part of a government plan to decentralise economic and political power away from Seoul, ease congestion in the capital and develop regional cities.

The struggle to fill roles at the fund has fueled debate over the merits of relocating crucial public institutions.

Two fund managers who left the NPS said the brain drain issue hasn’t adversely affected the fund’s performance yet but pension experts say it will.

“In Korea, there’s strong preference to live in the capital Seoul, among families, for schools and lifestyle,” Yun Suk-myung, head of the Korean Pension Association said. “Obviously the political push ignored that and having inexperienced, incompetent fundies will eventually hurt its investment returns.”

For many fund managers used to a certain standard of urban living, Jeonju has its limitations.

“There is one popular restaurant I went to often and I used to meet my boss and folks from other teams all there,” Lee said. “Everyone at the NPS kind of expects colleagues to be around the town.”

(Reporting by Cynthia Kim; Editing by Sam Holmes)









Read also

Save 90% on a lifetime subscription to KeepSolid VPN Unlimited

Cristiano Ronaldo an injury doubt for Rangnick’s Man Utd debut amid fears he damaged knee doing ‘siu’ celebration

Best Cow Ghee In Market


News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

Santa Claus Is Comin to Town and more Christmas Kids Songs from LooLoo Kids

Today24.pro — latest news 24/7. You can add your news instantly now — here


News Every Day

Santa Claus Is Comin to Town and more Christmas Kids Songs from LooLoo Kids



Sports today


Новости тенниса
WTA

Энди Роддик: WTA показала всем пример, моё уважение



Спорт в России и мире

Мастер-класс от чемпионов и рекордсменов мира по фридайвингу в «Чайке»


Загрузка...

All sports news today




Загрузка...

Sports in Russia today

Программа 17-го тура РПЛ продолжится в субботу матчами с участием ЦСКА и «Спартака»


Новости России

Game News

MoonBrawl 27.269


Russian.city



Губернаторы России
Владимир Путин

Волгоградцы собирают подписи в адрес Путина из-за произвола УК «Жемчужина»


Конституция Сталина 1936 года — одна из причин периода репрессий в СССР

Вьетнам планирует увеличить объемы производства российских вакцин против COVID-19

«Фармакология гор». Презентация книги про адаптацию в горах

Беляши от души! Сочные беляши с мясом - простой и вкусный рецепт от шеф-повара Кирилла Русецкого


Суд отклонил иск к компании «Донстрой» и певице Наташе Королевой

Элджея оштрафовали на 100 тысяч рублей по статье о пропаганде наркотиков

Элджей не пришел на суд по делу о пропаганде наркотиков

Глава МО Тверской Яков Якубович: «Борьба с инфляцией через повышение ЦБ учетной ставки может привести к стагнации экономики»


Медведев: победил Микаэля Имера за счёт его ошибок

Андрей Рублев вывел сборную России вперед в матче 1/4 финала Кубка Дэвиса со Швецией

Чесноков: для тенниса будет лучше, если Медведев сыграет с Джоковичем в финале Кубка Дэвиса

Кубок Дэвиса. Хорваты сенсационно одолели Сербию




Подопечные Градского на «Голосе» вспомнили последние слова наставника

«Кроме как прыгать в ноги и возиться в партере они больше ничего не умеют». Александр Емельяненко рассказал о своем отношении к лиге Хабиба в откровенном интервью на PREMIER

«Меня вообще не интересуют эти личности». Александр Емельяненко рассказал о своем отношении к лиге Хабиба в откровенном интервью на PREMIER

Войска Восточного военного округа спасают жителей от природных катаклизмов


Александр Ходаковский: это война России и Запада, а мы лишь наиболее острый ее участок

Хабиров: Главный проект "Единой России" - помощь во время пандемии

ЦСКА добыл три очка в Самаре

«Шоу профессий» раскроет секреты циркового мастерства



Путин в России и мире







Персональные новости
Russian.city

PRomoPulse

Сбор денег для нуждающихся. Если вы желаете помочь, обратите внимание на эту информацию!



News Every Day

Turbocharger Market Size and Prediction by Leading Manufacturers According to Its Application and Types Till 2028




Friends of Today24


Загрузка...
Музыкальные новости
"Воскресенье " Олег Митяев



Персональные новости
Близкий друг Путина миллиардер Пугачев. Вся правда о Путине, его семье и деньгах. В гостях у Гордона (2021)

Навальный об уволенном за пост священнике (2021)

Slava Marlow – суперуспех и депрессия в 21 год / вДудь (2021)

Обнаглевшие дети путинской элиты (2021)

Дайте собакам мяса (новый звук) -Владимир Высоцкий

Группа "Рождество" - песня "Так хочется жить!" (Видео с концерта в Киеве группы "РОЖДЕСТВО" в 2011 году в Доме офицеров)

Adriano Celentano Любимая песня Челентано (высочайшая энергетика) talentTV

Moscow.media