이 기사는 2021년 08월 20일 08시01분 thebell에 표출된 기사입니다

South Korea’s National Pension Service (NPS) is set to revise its rules to allow for remote due diligence on alternative investments as the Covid-19 pandemic continues to force return-hungry investors to adapt to virtual dealmaking.

The pension fund has recently issued a notice of the planned change to its operating rules to allow for virtual due diligence on investment targets and investment firms. The revision will be finalized after opinions are collected by August 27.

“We will amend rules to facilitate virtual ways of doing business as a prolonged pandemic environment makes it harder to find investment opportunities through existing methods such as onsite due diligence and face-to-face meetings,” said the NPS.

The draft revision would ease requirements for video conferencing of the fund’s subcommittee on alternative investment and allow for remote due diligence on asset managers and investment opportunities.

The revision comes after other South Korean limited partners adopted procedures that allow for virtual due diligence amid the pandemic.

Sovereign wealth fund Korea Investment Corporation and the Construction Workers Mutual Aid Association both updated policies to allow for conducting due diligence online in 2020 and early this year respectively.

The move by NPS is also in line with global asset managers that have been quick to move to virtual due diligence as social distancing and grounded planes have made it nearly impossible to travel overseas. With more investors becoming comfortable with virtual due diligence, some focus on the efficiency it brings to the investment process.

Global investment firms are said to come up with novel ways to perform due diligence without going onsite, with some using their own satellites and drones. The market for due diligence solutions and services is also reportedly growing rapidly. (Reporting by Hee-yeon Han)