South Korea’s state-run pension fund suffered a setback in its investment return in 2015 from a year earlier due to sluggish returns from stock investments, the health ministry said Wednesday.

The National Pension Service‘s investment returns stood at 4.57 percent last year, earning 21.6 trillion won ($17.6 billion), down 0.68 percentage point from a year earlier.


The NPS’ investment return was higher than the 2.4 percent rise in the country‘s benchmark index, the KOSPI, last year. The index suffered a drop of 4.8 percent in 2014, when the NPS posted a return of 5.25 percent.

Investments in local stocks and bonds racked up returns of 1.67 percent and 4.29 percent, respectively, last year, while the NPS’ investments in overseas stocks and bonds generated yields of 5.73 percent and 1.52 percent.

The combined amount of investment assets held by the NPS reached 512.3 trillion won at the end of last year, up 9 percent from a year earlier, said the ministry.

Local bonds account for 52.5 percent of the NPS‘ investment assets, followed by domestic stocks with 18.5 percent. Overseas stocks and bonds take up 13.7 percent and 4.2 percent of the total, respectively.

The NPS is the country’s largest institutional investor that wields influence in the decision-making process of companies. Last year, it held a key vote in the disputed landmark merger between Samsung C&T and Cheil Industries.

(khnews@heraldcorp.com)