The National Pension Service (NPS) Fund Management Division’s experienced hire recruitment drive, which began in April, concluded last month, falling significantly short of its hiring targets. The division aimed to recruit 26 professionals but ultimately hired only 18. This outcome has intensified concerns over a worsening talent shortage at the division, which requires highly specialized personnel.

According to ALIO, South Korea’s public institution management information system, on the 11th, the NPS selected a total of 18 final candidates in its first experienced fund management recruitment round of the year. This represents just 70% of the planned intake. The division sought to fill positions across 13 sectors, including investment strategy, stewardship responsibilities, domestic equity direct management, domestic bonds, overseas equities, overseas bonds, private equity and venture capital, real estate investment, infrastructure investment, alternative risk management, fund legal affairs, and fund information/AI. However, outcomes varied dramatically across these sectors.

The alternative investment sector recorded the highest competition ratios. The private equity and venture capital division was the most competitive at 21-to-1, followed by real estate investment at 15-to-1 and infrastructure investment at 7-to-1. The popularity of alternative investment roles is a trend that has continued from last year. In last year’s first recruitment round, private equity and venture capital saw an 8.5-to-1 ratio and real estate investment an 18-to-1 ratio. High competition persisted in the second round (private equity/VC 12-to-1, real estate 27-to-1) and third round (private equity/VC 6-to-1, real estate 14.5-to-1).

In contrast, traditional equity and bond divisions are struggling to secure talent. The domestic bond division saw six applicants, with four reaching the final stage, but failed to find a suitable candidate, resulting in zero hires. This marks the third consecutive recruitment failure for the domestic bond division, following the second and third rounds last year. Competition ratios were relatively low for domestic equities at 4-to-1 (one selected), overseas equities at 3.67-to-1 (three selected), and overseas bonds at 2-to-1 (one selected).

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