Baek Joo-hyun Appointed as New CIO of the 33 Trillion Won PSTP… Challenge to Sustain Record Performance

Baek Juhyun, former Head of the Investment Management Division at the Government Employees Pension Service, has been selected as the next Chief Investment Officer (CIO) of the Teachers’ Pension. An expert in alternative investments with a career spanning both insurance companies and public pension funds will now lead the management of the Teachers’ Pension fund, which amounts to approximately 33 trillion won. Baek will be tasked with continuing the record-setting performance of the Teachers’ Pension, which achieved its highest-ever results last year, amidst an increasingly complex investment environment.

According to the investment banking (IB) industry on July 9, the Teachers’ Pension began its public recruitment process for the next CIO in May. After conducting interviews, reference checks, and personnel verification, an HR committee was convened on July 8, during which Baek was selected as the next head of fund management.

It is reported that Baek received the highest score in the recent final interview evaluation. A total of 26 candidates applied for this round of public recruitment, with approximately five being shortlisted after the document screening stage. Four candidates ultimately participated in the final interview.

This appointment is a follow-up to the departure of the previous CIO, Jeon Beomsik, who moved to become the head of the fund management division at the National Federation of Fisheries Cooperatives. The Teachers’ Pension plans to formalize Baek’s appointment soon after completing the administrative procedures.

Extensive Experience in Insurance and Pension Funds… Successfully Reappointed as Government Employees Pension Service CIO

Teachers’ Pension Yeouido TP Tower

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Born in 1970, the new CIO, Baek, graduated from the Department of Economics at Hankuk University of Foreign Studies and began his financial career at the Export-Import Bank of Korea. He later obtained an MBA from Duke University in the United States and worked for about 20 years in the asset management division of Samsung Life Insurance. During his tenure, he gained experience in areas such as the New York branch, financial strategy, and alternative investments, building expertise in overseas investments, asset allocation, and alternative asset management.

After moving to the Government Employees Pension Service as CIO in 2022, he oversaw the management of funds ranging from 8 trillion to 12 trillion won. Even amid periods of heightened market volatility, he focused on maintaining stable asset allocation principles and discovered new alternative investment assets—such as senior housing, data centers, and infrastructure—through joint investments with foreign pension funds. He also promoted the internalization of investment capabilities by introducing a direct overseas equity investment system. In 2023, the Government Employees Pension Service achieved its highest investment return since 2006, and based on this performance, Baek successfully secured a second term as CIO.

Analysts believe that the main reason for selecting Baek as CIO of the Teachers’ Pension lies in his proven fund management experience. In recent pension CIO appointments, long-term asset allocation and risk management capabilities have been valued more highly than an aggressive investment approach. Given the increased difficulty of fund management due to interest rate volatility, geopolitical risks, and delays in the alternative investment market’s exit opportunities, having hands-on experience leading a public pension fund management organization has become a significant strength.

Maintaining Record-High Results… Focus on Overseas and Alternative Investment Rebalancing

The Teachers’ Pension, which Baek will now manage, is in good standing. Last year, the fund posted an investment return of 18.9%, with an operating profit of 4.8 trillion won, marking its highest-ever performance. The fund’s size has grown to nearly 33 trillion won, and it received the highest possible “Excellent” grade for five consecutive years in the Ministry of Economy and Finance’s fund management assessment. Both investment performance and management systems were recognized under the previous leadership.

Such high achievements will also be a source of pressure for the new CIO. Repeating last year’s high returns will not be easy, and the investment environment has become even more complicated. Uncertainties in the global interest rate trajectory, adjustments in overseas real estate values, and delays in private market exits are prompting pension funds to reassess their overall alternative investment strategies.

The Teachers’ Pension has been seen as having relatively limited infrastructure for overseas investments compared to its fund size. Expanding its overseas investment network, strengthening collaboration with top global asset managers, and establishing a risk management system suitable for the increased exposure to foreign assets are now considered core tasks for the new CIO. There is also a need for a balanced approach to reorganizing both domestic and international asset allocation strategies without undermining the achievements of the previous administration.

With the Teachers’ Pension having already set a high standard for both stability and profitability, Baek’s over 20 years of fund management experience and hands-on know-how from public pension operations will once again be put to the test.

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