Korea Investment Corporation, Korea’s sovereign wealth fund, has appointed Hong Taeg-ki as its new chief risk officer. The move follows the appointment of Don Lee Dong-ik as KIC’s chief investment officer, announced last week.

Hong is a career Bank of Korea executive, having joined the central bank in 1978. He had served as head of the bank’s reserve management group until last year, as well as CIO and chief risk officer.

BoK appointed Choo Heung-sik, another long-serving technocrat, as head of reserve management in December, but Hong has continued to advise BoK on strategic investment issues.

Hong says he took the job because KIC’s growing size and sophistication makes it an interesting challenge. As it invests more in alternative investments and new markets, the role for risk management in KIC’s asset allocation is more important.

Upgrading risk processes and systems is on KIC’s agenda.

Hong takes up a three-year term at KIC, effective immediately. He replaces Lee Yong-shin, who is retiring after having served a three-year term.

Senior jobs at KIC involve competition and Hong saw off 11 other candidates.

KIC’s president and CEO, Choi Chong-suk – himself in the role less than one year – hired Hong. Choi notes Hong’s experience overseeing the operations and risk management of foreign exchange reserves made him a valuable hire.

Bank of Korea is one of KIC’s shareholders, along with the Ministry of Finance and Strategy.