Minister Park Neung-hoo: "National Pension Service Buys Stocks to Stabilize Market... Fundamental Measures Needed"

[Asia Economy Reporter Minji Lee] The National Pension Service's Fund Management Committee (hereinafter referred to as the Fund Committee) is reviewing the impact of the novel coronavirus disease (COVID-19) spread on the financial market and preparing countermeasures. Although it has been reducing stock market volatility through domestic stock purchases, it has determined that fundamental measures are necessary as an economic slowdown is expected.

Minister of Health and Welfare Park Neung-hoo is delivering opening remarks at the '4th National Pension Fund Management Committee' held on the 17th at the Plaza Hotel in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

On the morning of the 17th, Park Neung-hoo, Minister of Health and Welfare, said at the 4th National Pension Fund Committee held at The Plaza Hotel in Jung-gu, Seoul, “The real economy is contracting due to the inflow of COVID-19, and volatility in the financial market is increasing,” adding, “According to the Fund Committee’s crisis awareness index, the situation is similar to the 2008 financial crisis.”

The National Pension Service is currently operating a crisis response task force (TF) to respond to the domestic stock market. Minister Park stated, “After asset prices fluctuated sharply due to increased volatility, we purchased domestic stocks to contribute to stabilizing the financial market,” and added, “Since it is difficult to accurately predict the Korean economic situation, we are responding by dispersing market transactions.”

He continued, “After the KOSPI fell to the 1400 level last month and the exchange rate approached the 1300 won level, it is now showing signs of recovery,” but explained, “Unless fundamental measures against the virus are established, we must closely monitor the domestic situation.”

Additionally, the Fund Committee plans to discuss the medium-term asset allocation for 2021?2025. This concerns setting the Fund Committee’s future target returns and how to achieve them. Minister Park said, “Since the economic growth outlook for the next five years has not been specifically announced, it will be conducted in the form of an interim report,” and added, “Reflecting opinions, a major allocation plan will be decided at the May Fund Committee meeting.”

Finally, Minister Park said, “We will actively communicate within the full-time expert committee to enable proactive roles,” and added, “As a long-term investor, the National Pension Service will strive to minimize losses and achieve returns during crisis situations.”

Meanwhile, a full-time expert also attended the Fund Committee for the first time that day. Newly formed expert committee members also attended and exchanged greetings with other Fund Committee members.

This content was produced with the assistance of AI translation services.