Park Neung-hoo "2024 Fund Size Nears 1,000 Trillion Won... Overseas Investment Expansion Inevitable"

The Next Decade of Fund Expansion... Increasing Returns Through Overseas Investments

[Asia Economy Reporter Minji Lee] Park Neung-hoo, Minister of Health and Welfare and Chairman of the National Pension Fund Management Committee, stated on the 31st, "The next 10 years will be a period of fund expansion with abundant liquidity, and we will contribute to fiscal stabilization by actively generating returns through overseas investments."

Chairman Park attended the '8th National Pension Fund Management Committee' held at The Plaza Hotel in Seoul on the same day and said, "Amid increased uncertainty in domestic and international financial markets, as a long-term investor, we will establish investment strategies considering the structural changes caused by the novel coronavirus infection (COVID-19)."

[Image source=Yonhap News]

To this end, Chairman Park explained that the proportion of overseas investments in the National Pension Fund will be maintained at over 50% of the total fund within four years. He emphasized, "With the fund size approaching 1,000 trillion won, expanding overseas investments is inevitable to overcome the limitations of domestic investments, diversify investment risks, and minimize domestic market shocks caused by asset sales."

Accordingly, since October last year, the Fund Committee has formed a task force team with the National Pension Research Institute and private experts to discuss overseas investment plans. He said, "We have prepared overseas investment plans after seven rounds of discussions at the Investment Policy Expert Committee," adding, "This is to reduce concerns about uncertainties in overseas financial markets and the lack of overseas investment capabilities."

Furthermore, on this day, the Fund Committee discussed standards regarding the composition and operation of the boards of directors of companies invested in by the National Pension Fund. This aims to increase predictability in the exercise of shareholder rights by the National Pension and includes general principles on the relationship between the National Pension, companies, and shareholders, as well as the functions, composition, operation of the board, and the role of audit bodies.

In addition, the Fund Committee exchanged opinions on expanding the disclosure scope of alternative investments to enhance the transparency of the National Pension and on the contents of the annual report on fiduciary responsibility activities.

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