South Korea's pension fund withdraws money from Goldman

It is seen as a retaliation for pulling out its asset management unit out of South Korea.

This is about the National Pension Fund's withrawal of all funds entrusted to Goldman Sachs for management.

The NPS is the world’s fourth largest pension fund with 368 trillion won or $341 billion in assets.

Goldman's decision to exit South Korea's local asset management market reportedly angered NPS Chairman Jun Kwang-woo, who heard of it while in New York. He canceled his luncheon meeting with high-ranking Goldman Sachs officials the following day.

''We decided to nullify a fund management contract with Goldman Sachs Asset Management right after it announced the plan to close its doors early next year. Foreign asset managers must operate a local office to manage our funds,’’ said an NPS official.

In response to the NPS move, Goldman Sachs said there is nothing it can do about it.

''It is totally up to institutional investors how to manage their funds. Money comes and goes,’’ a Goldman Sachs spokesman said.

In an apparent bid to appease the NPS, Vice Chairman of Goldman Sachs Michael Evans visited the pension fund’s headquarters in Seoul to explain its decision to shut down its asset management firm here. Evans also reportedly promised to expand its investment banking business in South Korea and hire more workers.

Goldman Sachs Asset Management said earlier that it decided to pull out of Korea after failing to make profits in the increasingly competitive marketplace.

For more.

Join Investment Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The Lion City also has the highest insurance penetration amongst the six markets at 5.9%.
On back of a modest increase in US interest rates.
As Asian hedge funds outperformed peers.
Santa is on his sleigh and the elves won't be back until Jan 6.