State Street Corporation says it has received South Korean regulatory approval to open a representative office in Jeonju, a move that the company says will help deepen its client relationship with the National Pension Service (NPS), which is headquartered in the city.
NPS awarded its first ever middle-office service mandate to State Street last September, and reappointed the US custodian bank as the back-office service provider for its global equities portfolio.
The company, which is currently operating from temporary premises in Jeonju, expects to sign the lease for the new office next month, State Street says in a statement on July 16.
NPS relocated its headquarters from South Korea’s capital Seoul to Jeonju in early 2017 as part of the government’s plan to decentralise operations to boost the economy in other regions of the country. Jeonju is approximately two hours by train south of Seoul.
“Jeonju is rapidly establishing its credentials as a major financial centre in Korea and we are pleased to be contributing to the city’s ongoing success, Ian Martin, State Street’s head of Asia Pacific, says in the statement.
According to Mr. Martin, the new office will enable the company to “deliver strategic partnership to NPS through better proximity”.
State Street established its first Korean representative office in Seoul in 1998, and incorporated it into a branch three years later.
Boston-based State Street had US$32.6 trillion of assets under custody and administration, and $2.8 trillion of assets under management, as of March 2019.
NPS, the world’s third largest pension fund, had 701 trillion won ($600 billion) of total assets at the end of March 2019.