Park Neung-hoo "National Pension Fund Returns Have Stabilized but Remain Low"

[Image source=Yonhap News]

[Asia Economy Reporter Ji-hwan Park] Park Neung-hoo, Minister of Health and Welfare and Chairman of the National Pension Fund Management Committee, stated on the 3rd, "Although the National Pension's rate of return is gradually stabilizing from the financial market shock caused by the novel coronavirus infection (COVID-19), it remains at a low level."

Chairman Park attended the 7th National Pension Fund Management Committee meeting held at the Four Seasons Hotel in Gwanghwamun, Seoul, on the morning of the same day and said, "Given the recent high uncertainty in the financial markets, thorough monitoring and proactive responses to market changes are necessary."

He assessed, "The spread of COVID-19 has changed our daily lives and social environment, and the global economic market is experiencing increased economic volatility, creating a difficult situation."

Accordingly, Chairman Park expressed his intention to actively engage in market monitoring. He emphasized, "The National Pension will strengthen risk management such as market monitoring and respond flexibly to market changes according to pre-established rules," adding, "We will steadily implement plans to expand overseas investments to increase long-term returns."

Last year, the National Pension achieved a fund management return rate of 11.34%. This marked a rebound just one year after a negative (-) 0.89% return in 2018 and was the highest return rate in the past decade. The profit also reached the highest level since the establishment of the Fund Management Headquarters in 1999. In particular, overseas stocks recorded a return rate exceeding 30%, largely influenced by the global stock market upswing and exchange rates. Domestic stocks also contributed to the double-digit returns of the National Pension, as the stock market rose nearly 10% driven by expectations of performance recovery in export companies such as the semiconductor industry.

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