Last Year's National Pension Fund Return Rate 10.86%

Ministry of Economy and Finance Reports 2021 Fund Evaluation Results to Cabinet Meeting... Consolidation of Four Funds Including Regional Newspaper Development Fund

[Asia Economy Sejong=Reporter Kwon Haeyoung] Thanks to the rise in overseas stock investment returns last year, the National Pension Service recorded an annual return rate of 10.86%.

The Ministry of Economy and Finance reported the results of the 2021 fiscal year fund asset management evaluation and retention evaluation to the Cabinet meeting on the 26th.

The fund evaluation is a procedure conducted annually according to the National Finance Act to assess the operation status and retention of funds.

In the 2021 fiscal year asset management evaluation, 30 out of 32 funds received a rating of 'Good' or higher. The Private School Teachers' Pension Fund, Industrial Accident Compensation Insurance and Prevention Fund, Government Employees Pension Fund, Disabled Employment Promotion and Vocational Rehabilitation Fund, and Small and Medium Venture Business Startup and Promotion Fund were rated 'Excellent.' The Farmers and Fishermen Lump-sum Savings Encouragement Fund received a rating of 'Very Poor.'

An official from the Ministry of Economy and Finance stated, "Thanks to the improvement in mid- to long-term asset returns, the operational performance of the evaluated funds has generally improved. In particular, social insurance funds achieved excellent results with an operating return rate of 6.97% through active investment diversification such as overseas stocks and alternative investments."

The National Pension Service's return rate was recorded at 10.86%, exceeding the 2020 return rate of 9.58%. The Ministry explained that it received a favorable evaluation for strengthening asset management expertise and independence, including the establishment of a dedicated overseas investment team and the annual increase in return rates.

Based on this evaluation result, the Ministry of Economy and Finance plans to allocate next year's fund operating expenses differentially and prepare and monitor the implementation of recommendations to improve fund profitability and supplement the management system.

After conducting retention evaluations on a total of 18 funds, the Ministry recommended the consolidation of four funds: the Regional Newspaper Development Fund, Farmers and Fishermen Lump-sum Savings Encouragement Fund, Gender Equality Fund, and Youth Development Fund, while the remaining 14 funds were judged to be retained. The Regional Newspaper Development Fund was conditionally retained on the premise of differentiating its business content and support targets from the Media Promotion Fund.