National Pension Service Chairman Choi Kwang said on Nov. 20 that his organization is working to diversify its investment destinations around the world.
“The national pension will reach US$1 trillion within 10 years and US$2 trillion within 30 years,” he remarked, adding, “Under the circumstances, we need to become more strategic and advanced than now in pension fund management in order to achieve decent and sustainable investment results with financial market uncertainties not going away.”
The funds run by the National Pension Service are equivalent to more than 30 percent of Korea’s national GDP. The amount has exceeded 455 trillion won (US$408 billion), which is second only to the Japanese national pension fund authorities. It is estimated to break the 2.4 quadrillion won (US$2.2 trillion) mark in 2040.
He mentioned increased and more efficient overseas investment as one of the methods for stable fund management and the reduction of its impact on the domestic financial market. Its ratio of overseas investment increased from 9.8 percent to 20.3 percent between 2009 and June this year. Experts point out that further expansion abroad is inevitable for the organization in view of the risks caused by the small scale of the domestic market, its influence in the market, and fund management sustainability.