Minister of Health and Welfare Park Neung-hoo attends a meeting of the investment management committee of the National Pension Service in Seoul in July. (Yonhap)
South Korea’s National Pension Service is likely to log a 7 percent return on its investments this year, the nation’s welfare minister said Wednesday.
“Investment environments seem to be on a recovery path with domestic and global economic indices improving and the (local) stock market hitting record highs recently,” said Park Neung-hoo, minister of health and welfare, who chairs the NPS’ asset management committee.
“The fund operator will be able to achieve a 7 percent return rate unless unexpected issues emerge.”
The committee members discussed how the world’s third-largest pension fund will exert its shareholder rights in a transparent manner, and how it will help conglomerates improve their extremely complicated cross-shareholding structures on their own.
The NPS’ previous target was a 5.2 percent return rate on its investments for the 2021-2025 period, the asset management committee explained, saying it sought to achieve this through diversification of its portfolio.
“The nation has been greatly affected by the still-ongoing coronavirus crisis earlier this year, and the fund operator will have to keep closely monitoring the pandemic as there is still uncertainty in the financial market,” said Park.
By Kim Young-won (firstname.lastname@example.org