South Korea will conduct an integrated survey of its seven public funds' long-term fiscal estimation in 2018 in a bid to map out proper fund management plans based on an accurate assessment, the Ministry of Strategy and Finance said Tuesday.
The survey by the National Pension Service and six others -- the Government Employees Pension Service, the Korea Teachers Pension, the Military Pension Service, the National Health Insurance Service, Workers' Compensation Insurance and Employment Insurance -- will be simultaneously conducted in 2018, the ministry said.
National Pension Service headquarters (Yonhap)
It will comprise their forecast of total funding, assets and profits for the next 70 years, starting from 2018, the ministry added.
Every five years, each pension service has carried out their own long-term estimation for the next 70 years or 45 years, while the three public insurance services release their five-year forecast every year.
"We can receive comparable objective estimations of public finances through the timely adjusted surveys," the ministry said in a release. "This will help the government analyze the national finances in a more accurate way and put the finances on a firmer basis."
The seven public funds have a combined 575 trillion won ($493.1 billion) in reserves as of end-2015, with a profitability of 2.2-4.6 percent.
The NPS, one of the world's largest institutional investors, employs a 512.3 trillion won worth of reserve funds, with a margin rate of 4.6 percent last year.
According to the latest forecast carried out in 2013, the NPS is expected to go into the red in 2044 and to be exhaus in 2060 as the country is fast becoming an aging society. (Yonhap)