Minister Kwon Deok-cheol: "Last Year's National Pension Fund Operating Return Rate 9.58%... Second Highest Profit in the Last 10 Years"

Health and Welfare Minister Kwon Deok-cheol is delivering a welcoming speech at the 'National Pension Fund Management Committee' held on the 2nd at the Plaza Hotel in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Ji-hwan Park] Minister of Health and Welfare Kwon Deok-cheol said on the 2nd, "Last year, the National Pension Service achieved a return rate of 9.58%, the second highest in the past 10 years." Minister Kwon also emphasized the need to closely monitor market conditions as financial market volatility is likely to increase.

As the chairman of the National Pension Fund Management Committee, Minister Kwon stated during the opening remarks of the 7th National Pension Fund Management Committee meeting of 2021 held at The Plaza Hotel in Jung-gu, Seoul, that "Last year, the National Pension Service made efforts to manage risks and improve returns amid the high uncertainty caused by COVID-19," adding, "We achieved excess returns compared to the benchmark in both domestic and overseas equity and bond asset classes," highlighting the performance of the National Pension Fund Management Headquarters last year. The National Pension's returns last year amounted to 72.1 trillion won, approximately 1.4 times the total National Pension premium income of 51 trillion won. It is about 2.8 times the National Pension benefit payments of 26 trillion won.

However, Minister Kwon also expressed concerns about recent financial market volatility. He assessed that the domestic and international economies are at a turning point, shifting from the COVID-19 crisis to recovery. He said, "Inflation rates, employment market conditions, monetary policy stances of major countries including the U.S., and market expectations regarding these are changing," and diagnosed that "the possibility of increased volatility in domestic and international financial markets cannot be ruled out." Minister Kwon urged, "The Fund Management Headquarters should continue to closely monitor market conditions and do their best to ensure stable operational performance of the National Pension Fund."

On this day, the National Pension Fund Committee is scheduled to review the evaluation report on last year's National Pension fund performance and the corresponding performance-based pay rates. Along with this, a report on the guidebook regarding the composition and operation of the boards of directors of companies invested in by the National Pension Fund is also expected to be presented. This guidebook includes policies such as the 'succession policy for chief executive officers (CEOs)' of companies invested in by the National Pension. Although it is a recommendation, companies are resisting because they believe the National Pension is likely to immediately engage in management participation against companies that do not follow these general principles.

Meanwhile, there was a disturbance inside and outside the meeting venue due to protests by disability rights groups. They demanded the enactment of the Act on Support for Deinstitutionalization of Persons with Disabilities and requested a meeting with Minister Kwon. Members of the groups attempted to enter the meeting room right after the Fund Committee began, but were blocked by police and hotel staff, and ended up confronting outside the venue for an extended period. On this day, members of the disability groups raised their voices, saying, "Reorganizing residential facilities is not deinstitutionalization," and "A deinstitutionalization roadmap based on the UN Convention on the Rights of Persons with Disabilities must be established, and the Act on Support for Deinstitutionalization of Persons with Disabilities must be enacted."

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