KIC chairman tenders resign after audit

By Yoon Ja-young

Ahn Hong-chul KIC chairman

The head of the Korea Investment Corporation (KIC) suddenly tendered his resignation Friday, with more than one year left before the end of his term.

The state organization managing assets entrusted by the government, the Bank of Korea, and public funds said that Chairman Ahn Hong-chul offered his resignation to the Ministry of Strategy and Finance, which oversees KIC, for personal reasons.

His three-year-term was supposed to be officially over in December 2016.

The sudden resignation came as a surprise as he had been steadfast in the face of strong pressure from the opposition parties since his inauguration in December 2013. The main opposition New Politics Alliance for Democracy (NPAD) has been demanding Ahn to resign after it was revealed that he had posted numerous slanderous remarks regarding the late former President Roh Moo-hyun and the NPAD chief Moon Jae-in, who was the party’s presidential candidate, on a social networking service during the 2012 presidential election. Back then, Ahn was working for President Park Geun-hye the then candidate of the ruling Saenuri Party.

On top of the SNS scandal, Ahn was also criticized for extravagant spending and declining investment gains at the company. At a parliamentary audit last month, lawmakers of both the ruling and opposition parties criticized him, pointing to extravagant business trips and high salary. He received a total 475 million won in pay last year, the highest among chiefs of state-run organizations, despite poor investment returns. Lawmakers pointed out that its investment return of 4.02 percent was the lowest among the world’s major sovereign funds.

The failed investment plan in the LA Dodgers, a Major League Baseball (MLB) team, also stirred controversy.

After he triggered political confrontation, it was revealed later that Strategy and Finance Minister Choi Kyung-hwan and Ahn Jong-beom, senior presidential secretary for economic affairs, had recommended him to step down, but he refused.

Hence, there is speculation that the inspection by the state auditor may have prompted him to resign. The Board of Audit and Inspection looked into the sovereign fund in July following a parliamentary request. It is scheduled to release the result of the inspection next week at the earliest.