[비즈한국] KDB Infrastructure Investments, a subsidiary of the Korea Development Bank (KDB), is establishing an office in Jeonju, Jeonbuk State. The company’s headquarters is currently located at the FKI Tower in Yeouido, Seoul. Industry analysts suggest this move is aimed at building closer ties with the National Pension Service (NPS). The NPS recently updated its selection criteria for external asset managers to include bonus points for firms that maintain a physical presence in Jeonju. Jeonju, home to the NPS headquarters, is currently pushing to become a “financial hub specialized in asset management.”
Founded in 2003, KDB Infrastructure Investments is an asset management firm specializing in infrastructure funds. It primarily manages funds invested in social overhead capital (SOC) such as roads, railways, and ports. As of the end of last year, KDB held an 84.16% stake in the firm, while Woori Bank and Kyobo Life Insurance held 9.90% and 5.94%, respectively.
KDB Infrastructure Investments recently signed a lease agreement for a section of the KDB Jeonju branch building. The KDB Jeonju branch is located in Gyeongwon-dong, Wansan-gu, a bustling commercial area in Jeonju. The company explained that the lease is “intended to establish an office in Jeonju.”
Lee Sang-woon, Head of the Asset Management Division at KDB Infrastructure Investments, is expected to oversee the Jeonju office. The company recently announced in a disclosure that Lee’s scope of duties has been expanded from “General Head of Asset Management Division” to “General Head of Asset Management Division and Management/Supervision of Office Operations.” Consequently, his responsibilities now include the “execution and operation of internal controls related to asset management duties and organizational management, as well as the operation and management of the office.” This marks the addition of office management duties to his existing responsibilities.
This move by KDB Infrastructure Investments is interpreted as being linked to the policies of the National Pension Service. In June, the NPS introduced a “local presence at fund management headquarters” as a bonus item in its selection criteria for domestic equity and bond external asset managers. The policy awards one bonus point to firms that maintain a base (office) in Jeonju, where the NPS headquarters is located.
Following the NPS announcement, numerous asset management firms have established offices in Jeonju. According to Jeonbuk State, IBK Asset Management and Pacific Asset Management opened offices in Jeonju in August, while Midas Asset Management, Truston Asset Management, and Capstone Asset Management followed suit in September. More recently, Hyundai Investment Asset Management also set up an office in the city.
On October 7, Jeonbuk State announced, “The number of domestic and international financial institutions with a presence in the province has reached 35. We expect this solid foundation to serve as a practical policy justification to secure the government's designation as a ‘third financial hub’ and to attract ‘secondary public institutions.’”
Given this context, it appears that KDB Infrastructure Investments is looking to increase its touchpoints with the NPS by establishing a base in Jeonju. This also aligns with the interests of Jeonju, which is striving to become a specialized financial city for asset management. The financial industry is keeping a close watch on whether the establishment of this Jeonju office will serve as a stepping stone for the company’s further growth.