"National Pension Service Achieves Second Highest Return in 10 Years Last Year"

Minister Kwon Deok-cheol Attends Fund Management Committee
"Closely Monitoring Financial Market Volatility"

Health and Welfare Minister Kwon Deok-cheol is delivering opening remarks 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 Park Jihwan] Kwon Deok-cheol, Minister of Health and Welfare, announced on the 2nd that "last year, the National Pension Service achieved a return 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 at the 7th National Pension Fund Management Committee meeting of 2021 held at The Plaza Hotel in Jung-gu, Seoul, "Last year, despite the high uncertainty caused by COVID-19, efforts were made to manage risks and improve returns, resulting in excess performance compared to the benchmark returns in both domestic and overseas stocks and bond asset classes." 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. This 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 United States, and market expectations regarding these are changing," adding, "It is impossible to rule out the possibility of increased volatility in domestic and international financial markets." Minister Kwon urged, "The Fund Management Headquarters should continue to closely monitor market conditions and do their best to ensure stable management 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 management performance and the corresponding performance-based bonus payment rates. Additionally, a report on the guideline concerning the composition and operation of the boards of directors of companies invested in by the National Pension Fund is expected. This guideline includes policies on CEO succession for companies in which the National Pension invests. Although these are recommendations, companies are resisting because they believe the National Pension is likely to immediately engage in management participation if companies do not follow these general principles.

Meanwhile, inside and outside the meeting venue, there was commotion due to protests by disability organizations. They demanded the enactment of the Disability De-institutionalization Support Act and requested a meeting with Minister Kwon. Members of the organizations attempted to enter the meeting room immediately after the committee session began but were blocked by police and hotel staff, leading to a prolonged standoff outside the venue. The disability group members raised their voices, saying, "Reorganizing residential facilities is not deinstitutionalization," and called for "the establishment of a deinstitutionalization roadmap based on the UN Convention on the Rights of Persons with Disabilities and the enactment of the Disability De-institutionalization Support Act."

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