[2024 Alternative Investment Forum] National Pension Service to Invest 1 Trillion Won in Alternative Investments in Q4

The 2nd Asia Economy Alternative Investment Forum Opens
Over 200 Senior Officials from the Financial Investment Industry Attend Successfully

The National Pension Service (NPS) will undertake approximately 1 trillion KRW in alternative investments to support companies facing temporary liquidity shortages and to help revive the stagnant real estate market. This aims to find investment opportunities in stable corporate and real estate loans amid the persistent high-interest-rate market environment and to achieve appropriate returns.

Kim Tae-hyun, Chairman of the National Pension Service, stated in a congratulatory speech at the '2nd Asia Economy Alternative Investment Forum' held on the 12th at the Conrad Hotel in Yeouido, Seoul, "For the first time since the establishment of the Fund Management Headquarters, we plan to select two real estate loan fund managers in November this year, totaling 600 billion KRW in the real estate sector."

Kim Tae-hyun, Chairman of the National Pension Service, is delivering a congratulatory speech at the '2nd Asia Economic Alternative Investment Forum' held on the 12th at the Conrad Hotel in Yeouido, Seoul. Photo by Kang Jin-hyung aymsdream@

The National Pension Service has continuously sought promising alternative asset investment opportunities within manageable risk limits while maintaining thorough risk management.

Chairman Kim added, "Within this month, we plan to select three fund managers totaling 350 billion KRW to provide credit and distressed asset investments targeting companies with excellent capabilities but temporarily facing difficulties in fundraising."

As institutional investors and individual asset owners increasingly seek to manage investment risks and find new opportunities, the importance of alternative investments complementing traditional assets such as stocks and bonds is growing. Reflecting the rapid growth of the alternative investment market and investor interest, the 2nd Asia Economy Alternative Investment Forum, themed "Global Alternative Investment Trends and Korea’s Opportunity Creation (K-Value Up)," was attended by over 200 senior officials from the financial investment industry, including Kim Tae-hyun, Chairman of the National Pension Service; Seo Yoo-seok, Chairman of the Korea Financial Investment Association; Yoon Geon-su, Chairman of the Korea Venture Capital Association; Ramin Sang, Chairman of the PEF Operators Council; Ha Young-gu, President of Blackstone Korea; as well as representatives from securities firms, asset management companies, private equity funds (PEF), and venture capital (VC).

Hyun Sang-soon, Chairman of Asia Economy, said in his opening remarks, "Until recently, the financial market has been volatile due to high uncertainty caused by major countries’ high-interest-rate policies and concerns over a US-led economic recession, making the domestic and international environment challenging." He added, "The depressed atmosphere has made it difficult to attract new funds or recover them, and a cold wave has hit the mergers and acquisitions (M&A) market." Chairman Hyun noted, "Market volatility is expected to remain high in the second half of the year," and said, "Unpredictable US presidential elections, unstable Middle East situations, and risks of US commercial real estate defaults present a thorny path for investors, but it is precisely at such times that new opportunities must be sought." He explained the forum’s background by stating, "We have overcome multiple crises, achieved greater results, and developed the market. Saying the investment environment is tough means there are opportunities, and we must find new opportunities through diverse alternative investment assets."

Seo Yoo-seok, Chairman of the Korea Financial Investment Association, said in his congratulatory speech, "At the recently concluded 2024 Paris Olympics, our Korean national team showed remarkable performances across various events." He added, "This demonstrated Ray Dalio’s investment adage that diversifying portfolios can reduce risk while maximizing returns, as seen in the sports field." Chairman Seo emphasized, "When establishing asset allocation strategies, alternative investments that provide long-term stable returns and risk diversification effects, in addition to traditional asset investments, have become a necessity rather than a choice." He further stated, "Since COVID-19, rapid interest rate hikes worldwide and geopolitical risks such as wars have led us to unprecedented crises," and stressed, "A more meticulous and strategic approach to activating alternative investments is needed now more than ever to turn crises into opportunities."

In the subsequent special lectures, economist Dr. Kwak Soo-jong explained global capital market variables that investors should pay attention to under the theme "Changes in Capital Markets After the US Presidential Election." Additionally, Lee Hoon, Chief Investment Officer (CIO) of Korea Investment Corporation (KIC), presented on "Global Economic Outlook and Investment Strategy Directions," Shin Hwan-jong, Head of Investment Strategy at Korea Investment & Securities, spoke on "Alternative Investment Trends, Risks, and Opportunities," and Won Jong-hyun, member of the National Pension Service Investment Policy Committee, gave a presentation on "NPS Fiduciary Responsibility Activities and Value Up."