Public Officials Pension Service Secures 262.7 Billion KRW Liquidity by Selling Low-Yield Assets

Utilization for Fund Growth

[Asia Economy Reporter Park So-yeon] The Government Employees Pension Service (GEPS) has decided to sell low-yield assets to secure liquidity exceeding 260 billion KRW, which will be used to increase the fund.

According to the investment banking (IB) industry on the 26th, GEPS recently reported this plan, titled the 'New Government Corporation Innovation Plan,' at its board meeting.

According to the plan, GEPS will secure liquidity of approximately 262.7 billion KRW by 2025 by selling low-yield assets as part of asset efficiency measures.

The plan involves selling assets with low profitability and those that have been unused for a long time among assets for core purpose projects and operational use, and utilizing the proceeds to increase the fund.

According to the plan, GEPS is expected to promote the sale of unused real estate scattered nationwide, including executive residences in Jeju-do.

For example, GEPS acquired approximately 30㎡ plots in Sokcho and Yangyang for 1.237 billion KRW in 1984 to build recreational facilities, and purchased an 80㎡ plot in Munmak, Wonju for 5.572 billion KRW in 2004 to create a memorial park. However, these plots remain unused real estate.

The corporation plans to maximize liquidity over the next three years through active asset adjustments such as selling idle real estate and use this to increase the fund.

As of the end of July this year, GEPS manages financial assets worth 8.7573 trillion KRW. The amount increased to 9.5349 trillion KRW as of the end of February this year but decreased to 7.6018 trillion KRW by the end of June. Monthly returns have continuously recorded negative figures this year.

Meanwhile, to innovate the corporation, GEPS decided to maintain its core functions?pension, disaster compensation, and fund management?while abolishing, transferring, or downsizing some welfare and retirement support functions and non-core entrusted tasks.

The functions and organization will be finalized within the year, with a reduction in staff, and the reorganization for regional consolidation of local offices will be carried out gradually. Additionally, the budget for next year plans to reduce operating expenses by 16.6% from this year to 19.441 billion KRW.

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