National Pension Service Restructures Organization to Expand Overseas Investment... "Strengthening Risk Management"

[Asia Economy Reporter Minji Lee] The National Pension Service Fund Management Headquarters announced on the 13th that it has reorganized its Fund Management Headquarters to flexibly respond to the rapidly changing domestic and international investment environments and to strengthen the expansion of overseas investments.

According to the comprehensive overseas investment plan prepared last year, the overseas securities investment division, Overseas Securities Office, was separated and expanded into the Overseas Equity Office and Overseas Bond Office. Accordingly, the Fund Management Headquarters now consists of 3 divisions, 12 offices, 1 bureau, 1 team, and 3 overseas offices (a total of 38 teams and 5 departments) under the head of the Fund Management Headquarters.

The National Pension Service Fund Management Headquarters stated, “Through the organizational restructuring reflecting the overseas investment expansion strategy, we will establish a foundation for expanding direct overseas equity management and for flexible strategy formulation in response to changing markets. Regarding overseas bonds, we plan to respond more effectively to changes in domestic and international investment environments by expanding the investment proportion in overseas bond asset classes and preparing to increase investments in credit instruments such as corporate bonds.”

Additionally, to strengthen risk management for alternative investments, the Alternative Risk Management Team was separated and reorganized into private equity and real asset sectors.

Chairman Kim Yong-jin said, “The National Pension Service is approaching the milestone of KRW 1,000 trillion in fund reserves and KRW 500 trillion in overseas assets amid the rapidly changing domestic and international financial investment environment. Through this organizational restructuring, we expect to strengthen the fund’s alternative investments as well as overseas investment capabilities in the securities sector, establishing ourselves as a globally recognized professional pension fund management institution.”

Meanwhile, as of October last year, the fund’s managed assets amounted to KRW 772.2 trillion, of which overseas investment assets reached KRW 279.4 trillion. Overseas equities accounted for KRW 17.984 trillion (22.3%) and overseas bonds KRW 41.129 trillion (5.3%). By the end of this year, these proportions are planned to be expanded to 25.1% and 7%, respectively. By the end of 2024, the target is to increase the proportions to around 35% and 10%, respectively.

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