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.
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