Ministry of Planning and Budget Fund Committee Scrutinizes Lead Manager's Security Breach: "Take Every Precaution to Prevent a Similar Incident from Happening Again"

Targeting both profitability and public value through the National Growth Fund and other investments
Lead manager's hacking incident: "Measures must be put in place to prevent a recurrence"

The Fund Investment Pool, which has established itself as a key asset management platform for government funds and public institutions, is accelerating efforts to boost returns by significantly expanding alternative investments, including venture funds. In response to a recent security breach at Mirae Asset Global Investments, the lead manager, the government has also signaled a sweeping overhaul of its oversight and supervision.

Cho Yongbeom, Vice Minister of Planning and Budget, delivers opening remarks while chairing the 4th Fund Asset Management Policy Committee meeting at the Korea Deposit Insurance Corporation in Jung-gu, Seoul, on the morning of November 13. Ministry of Planning and Budget.

On November 13, the Ministry of Planning and Budget held the 4th Fund Asset Management Policy Committee meeting, chaired by Vice Minister Cho Yongbeom, to focus on the suitability of new alternative investment products and measures to strengthen information security management. The committee reviewed the suitability of eight new alternative investment products, including the National Growth Fund, and reaffirmed its policy of diversifying investments. Funds have in fact flowed primarily into the National Growth Fund and the Innovative Growth Venture Fund, bringing the scale of alternative investments to 1.209 trillion won as of October this year. Referring to the status of the Fund Investment Pool, whose assets under management have exceeded 90 trillion won, Vice Minister Cho stressed that “fund management must safeguard stability and profitability while also serving as seed money to spur private investment.”

However, the committee sharply criticized the security vulnerabilities at the lead manager responsible for managing the growing pool of funds. It reviewed the circumstances and response measures surrounding the recent breach involving the depositary institution’s website at Mirae Asset Global Investments and discussed fundamental measures to strengthen information security. Committee members noted that lead managers are required to demonstrate a high degree of responsibility and reliability because they handle government public funds, even though they are private institutions. They also voiced concern that cyber threats are intensifying with advances in artificial intelligence, and urged the lead manager to use this incident as an opportunity to reexamine its company-wide information security system and take every precaution to prevent a similar incident from happening again.

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