Park Neung-hoo: "National Pension Fund Returns Are Low but Stabilizing"

Minister Park Neung-hoo Attends Fund Management Committee
Last Year's Return Rate 11.34%, Highest Ever

[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 (photo), 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 held at the Four Seasons Hotel in Gwanghwamun, Seoul, on the morning of the same day and said, "Due to the recent high uncertainty in the financial market, thorough monitoring and proactive response 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 facing 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."

The National Pension achieved a fund management rate of return of 11.34% last year. This marked a rebound just one year after a negative (-) 0.89% return in 2018 and was the highest rate of return in the past 10 years. The profit also recorded the highest level since the establishment of the Fund Management Headquarters in 1999.

In particular, overseas stocks had a significant impact, recording a rate of return exceeding 30% due to the global stock market uptrend and exchange rate effects. Domestic stocks also led the National Pension to achieve double-digit returns as the stock market rose nearly 10% on expectations of performance recovery in export companies such as the semiconductor industry.

On this day, the Fund Committee also approved the performance bonus payment rate for the Fund Management Headquarters and the revision of the National Pension domestic stock trustee responsibility activity guidelines.

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