"Next Year Marks the Era of 1000 Trillion KRW in National Pension (Comprehensive)"

[Jeonju (Jeonbuk) = Asia Economy Reporter Park Soyeon] Kwon Deok-cheol, Minister of Health and Welfare, stated, "The scale of the National Pension Fund management has reached 900 trillion won," and added, "It is expected to exceed 1,000 trillion won next year."

Kwon Deok-cheol, Minister of Health and Welfare (Chairman of the Fund Management Committee), made these remarks during his opening speech at the 8th meeting of the National Pension Fund Management Committee (Fund Committee) held on the 25th at the National Pension Service Headquarters Happiness Pension Hall in Jeonju, Jeonbuk.

As of the end of the second quarter (April to June) this year, the National Pension Fund reserves increased by 74.5 trillion won compared to the end of last year, totaling 908.3 trillion won.

The fund reserves are expected to exceed 1,000 trillion won next year.

According to the Fund Management Headquarters, the fund's rate of return in the first half of this year was 7.49%, and the cumulative operating profit since the fund's establishment in 1988 amounted to 502.3 trillion won.

By asset type, domestic stocks and overseas stocks recorded favorable returns of 15.59% and 17.73%, respectively, in the first half of the year, supported by continuous economic stimulus policies and the global economic recovery following the distribution of COVID-19 vaccines.

Domestic bonds yielded a return of -1.16% due to inflation concerns stemming from economic stimulus measures, while overseas bonds showed a 2.27% return influenced by the rise in the KRW-USD exchange rate.

Alternative investments such as real estate posted a provisional return of 4.97%. The annual return on alternative investment assets mostly reflects interest, dividends, and trading gains or losses as provisional figures, with the final annual return including asset fair value evaluations to be confirmed in June next year.

Minister Kwon Deok-cheol noted, "The Fund Management Headquarters, which started with 40 people in 1999, has grown into an organization of 400 people this year," and added, "Despite the challenging global financial market conditions due to COVID-19 last year, the fund management achieved a performance of generating over 72 trillion won in profits."

Minister Kwon said, "Based on these achievements, the National Pension, which has grown into one of the world's top three pension funds, serves as a solid pillar supporting the stable and happy lives of the nation's elderly," and added, "Going forward, I ask the Fund Management Headquarters to carry out their duties with pride in managing one of the world's top three pension funds and with a strong sense of responsibility for the nation's retirement security."

Regarding the reappointment of Ahn Hyo-jun, Head of the National Pension Fund Management Headquarters (CIO), he evaluated, "The second reappointment of the Fund Management Headquarters head is the first since the establishment of the Fund Management Headquarters," and said, "Since his appointment, he has achieved high returns for two consecutive years and has greatly contributed to strengthening management capabilities amid changes in the economic and financial environment caused by COVID-19."

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