National Pension Service (Yonhap)
South Korea's state pension operator saw its returns fall to a record low level in 2022, data showed Tuesday, due to the instability in the global financial market amid monetary tightening moves.
The National Pension Service logged negative returns of 8.28 percent in 2022, marking the lowest level since it was launched in 1988, according to the Ministry of Economy and Finance.
"(The negative returns) were affected by the jitters in the global financial market sparked by the US rate hikes, along with a simultaneous slump in the securities and bond markets," a government official said.
The NPS saw its investment returns reach 10.77 percent in 2020 and 10.86 percent in 2021.
The finance ministry, however, maintained a "satisfactory" grade, the third highest in the six-tier system, as the latest performance of the NPS did not fall behind other major global rivals.
The state-run pension funds of the Netherlands and Norway posted negative returns of 17.6 percent and 14.1 percent, respectively, in 2022, the finance ministry data showed. Those of Japan and Canada also remained in the red, posting a minus return rate of 4.8 percent and 5 percent, respectively.
The finance ministry advised 18 of the 24 state-run funds to restructure or improve their investment projects.
The proposal also suggests merging the Broadcast Communications Development Fund with the Fund for Promotion of Information and Communications, as their roles overlap. (Yonhap)
MOST POPULAR