Alternative Investment
The National Pension Service will hire a record number of asset and risk managers to increase its alternative investment in hedge funds, overseas REITs, and resource funds. At the same time, it is going to ask the National Assembly next year to pass a bill stipulating the independence of its fund management unit.
At present, the National Pension Service’s alternative investment is restricted to real estate, infrastructure, venture firms, corporate restructuring corporations, private equity funds, and natural resource development.
However, next year it is going to focus on fresh investments in overseas healthcare markets and the like in the interest of income source diversification. Major Korean corporations such as the Samsung Group have already started their investment in hospital infrastructure abroad, taking note of the high growth potentials. For instance, Samsung Life Insurance, Samsung C&T and Samsung Asset Management are currently participating in a national hospital construction project in Turkey, and major Korean hospitals are expanding their business abroad these days.
“The highest profits are earned from the investment in natural resources infrastructure as of now, but healthcare infrastructure investment is also expected to bring a return of approximately 10 percent a year,” the organization explained, adding, “National hospitals guarantee rents over the long term and thus can be very attractive investment targets.”