Brokerage firm chosen as preferred bidder to manage unemployment insurance fund

By Lim Chang-won Posted : March 28, 2019, 18:12 Updated : March 28, 2019, 18:12

[Courtesy of Korea Investment and Securities]

SEOUL -- The Korea Investment and Securities (KIS) was selected as the preferred bidder to manage a reserve fund of 9.5 trillion ($8.37 billion) for South Korea's unemployment insurance fund, which gives short-term relief to workers when they become unemployed or are unable to work.

KIS received the highest score among three brokerage firms including Shinhan, NH, and KB in an evaluation committee, which selects a dedicated asset management agency for the employment insurance fund, the Ministry of Employment and Labor said Thursday.

If KIS wins a formal four-year contract through due diligence and negotiations on its operational capabilities, the brokerage firm will become the main manager of the reserve fund, starting in July, to offer comprehensive services such as asset management, risk management and performance evaluation.

The contract expires in June 2023, but there will an annual evaluation to decide whether to retain KIS as the fund's manager. KIS is a subsidiary of Korea Investment Holdings.
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