Park Neung-hoo: "National Pension Service Can Make Additional Domestic Stock Purchases... Will Meet Market Expectations" (Update)

[Asia Economy Reporter Minji Lee] Park Neung-hoo, Minister of Health and Welfare, hinted that if market expectations for the role of the National Pension Service (NPS) rise again, it may increase its purchases of domestic stocks.

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@

After the 4th National Pension Fund Management Committee (hereafter Fund Committee) held on the morning of the 17th at The Plaza Hotel in Jung-gu, Seoul, Minister Park told reporters, “I believe that last month the NPS’s active intervention helped stabilize the domestic capital market,” adding, “If there are expectations for the NPS in the domestic stock market during volatile times, we will respond accordingly.”

He continued, “The Fund Committee must prioritize stability and profitability, but the stability of the capital market is also an important policy consideration,” and stated, “Under the asset allocation principles, if purchasing domestic stocks can contribute to stabilizing the stock market, we will do so.”

Over the past decade, the NPS has maintained a policy of reducing its domestic stock ratio and increasing its overseas stock ratio. However, it is expected to actively invest in domestic stocks during short-term market fluctuations to serve as a 'stock market safety net.'

Minister Park also explained, “When the stock market experiences a large decline, the originally set ratio naturally decreases, so to adjust that ratio, it becomes necessary to increase the stock ratio,” adding, “We will intervene in the stock market with policy discretion according to the target ratio by asset class and the upper and lower limits set by previous Fund Committees.”

Furthermore, Minister Park stated that in response to concerns about the prolonged COVID-19 pandemic, they will respond to each market with various scenarios.

Finally, Minister Park expressed his determination to respond flexibly to rapidly changing economic conditions. He emphasized, “Although we hold an operating committee about once a month to plan overall asset management and fund operation, if volatility increases, we will hold meetings weekly to devise new strategies.”

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