Shinhan BNP Paribas Asset Management has announced it will start working as a management company for National Health Insurance Service (NHIS)’s alternative investments,  the Money Today reported on June 2.

NHIS selected Shinhan BNP Paribas Asset Management and KB Asset Management to manage about 1.4 trillion  won ($1.15 billion) over the next four years. The companies recently concluded a business agreement after conducting due diligence and will operate about 700 billion won each. Shinhan BNP Paribas Asset Management’s Asset Under Management is expected to increase by almost 57 trillion won.

NHIS conducted an open bidding to find management companies for alternative investment on April 6. The purpose of this plan was to respond to changes in the operating environment for the NHIS fund, to increase profitability through the diversification of investment destinations and to select management companies with expertise to carry out alternative investments.

Many comprehensive asset management companies, especially those with an Outsourced Investment Management (OCIO) department, participated in the bidding process. Shinhan BNP Paribas Asset Management has OCIO experience – it won a mandate from Radioactive Waste Management Fund in 2018.

“The company has a great sense of responsibility as funds are from the NHIS, which practices missions to improve the quality of people’s lives by promoting national health and social security,” Sooyong Joo, head of Shinhan BNP Paribas Asset Management’s OCIO department said. (Reporting by Hyewon Chang)