"Next Year Marks the Era of 1,000 Trillion Won in National Pension Fund"

[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.

Minister Kwon said, "The Fund Management Headquarters, which started with 40 people in 1999, has grown into an organization of 400 people as of this year," and noted, "Despite the global financial market difficulties caused by COVID-19 last year, the fund management achieved a performance of generating over 72 trillion won in profits."

He added, "Based on these achievements, the National Pension, which has grown into one of the world's top three pension funds, serves as a strong pillar supporting the stable life and happiness of the nation's elderly," and said, "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."

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

At the Fund Committee meeting held that day, the adjustment plan for the scope of entrusted overseas bond management of the National Pension and the guidebook for investee company boards of directors were deliberated. The guidebook for investee company boards was delayed due to protests by disability groups at the 7th Fund Committee meeting and was not reported to the Fund Committee.

Minister Kwon stated, "Companies are introducing ESG (Environmental, Social, and Governance) responsible management with long-term plans and strategies," and added, "In Korea as well, ESG management activities are spreading, such as the establishment of separate ESG boards within company boards."

He further emphasized, "The National Pension Fund, which requires long-term management, also needs an ESG investment approach that considers factors enhancing the sustainability of companies and society," and stressed, "In the long term, this will greatly help secure both profitability and stability in fund management."