The search for the head of the world’s fourth-largest pension fund has begun, with a high-profile trial on an alleged bribery case involving the nation’s former leader, Samsung’s chief and the pension operator nearing an end.

The National Pension Service said Wednesday that it has formed a committee to pick candidates for the chairman post, which has been vacant since late last year. Former NPS Chairman Moon Hyung-pyo was found guilty of pressuring the pension fund to back a controversial merger between Samsung C&T and Cheil Industries in 2014. Moon was the welfare minister and the head of an internal committee at the pension fund at that time.

According to a special counsel, a team of prosecutors and independent lawyers, the NPS’ backing of the merger plan had helped Samsung’s de facto leader Lee Jae-yong consolidate power over the conglomerate’s crown jewel Samsung Electronics.

The NPS’ involvement in the bribery case has angered the public, not only due to the financial loss it risked by approving the merger, but also over the pension fund’s political neutrality and independence.

Launched in 1988, the 29-year-old pension operator currently has more than 21 million subscribers contributing 9 percent of their income every month. The power the NPS yields in capital markets is enormous. By size, the NPS is the world’s fourth-largest pension fund, operating about 560 trillion won, and has more than 5 percent of shares in about 290 companies.

In a bid for a turnaround, rumors are circulating that candidates will include pension experts who worked for President Moon Jae-in’s election camp.

The list includes Kim Yeon-myeong, a welfare professor at ChungAng University in Seoul, and Kim Sung-joo, a former lawmaker of the Democratic Party. Professor Kim was an architect of President Moon’s pension policies during his campaigns in 2012 and this year. He has been pushing for the NPS’ role in expanding its investment in the public sector.

Former lawmaker Kim is known for a deep understanding of the pension fund as he worked as a member of a parliamentary committee for health and welfare during his term. A native of Jeonju, Kim contributed to relocating the head office of the pension fund to his home town, according to local reports.

Also on the list is Joo Jin-hyeong, former president of Hanwha Investment and Securities, who grabbed media attention for criticizing the Samsung merger at a parliamentary hearing late last year. At a nationally televised hearing session, he denounced the NPS for approving the merger despite knowing that it would lose much of its investment.

The NPS was the largest institutional investor of Samsung C&T and is under the control of the Welfare Ministry. Before the merger, the NPS held an 11.6 percent stake in Samsung C&T and a 5 percent stake in Cheil Industries. The pension fund reportedly lost 300 billion won over the merger.

The NPS committee in search of the new chairman screens the profiles of applicants and conducts interviews. It then recommends candidates to the welfare minister.

The minister picks one nominee and requests the president for final approval. The term of the NPS chairman is for three years, but he or she can retain the job for one more year based on his or her performance. The head of the asset management division is selected by the NPS chairman, with the welfare minister holding the final right to approve the nomination.

By Cho Chung-un (christory@heraldcorp.com)