Last Year, 160 Trillion Won National Pension... 15% Operation Yield 'All-Time High'

Record-High Returns for Two Consecutive Years
34% Gain in Overseas Markets... -7% in Korean Stock Market

The National Pension Service (NPS) recorded an operating return of 15% last year, achieving the highest fund management performance for two consecutive years. While it earned over 30% returns in overseas stock markets, it suffered nearly a 7% loss in the domestic stock market.

On the 28th, the Fund Management Headquarters of the National Pension Service announced that as of the end of last year, the National Pension Fund had accumulated KRW 1,213 trillion, with earnings of KRW 160 trillion and a return rate of 15.00% (provisional, amount-weighted return rate).

This is the highest return rate since the fund was established in 1988. The average annual return since the fund's inception was 6.82%. The cumulative operating earnings amounted to KRW 738 trillion.

By asset class, overseas stocks posted the highest return at 34.32%, followed by ▲overseas bonds at 17.14%, ▲alternative investments at 17.09%, ▲domestic bonds at 5.27%, and ▲domestic stocks at -6.94%.

Overseas stocks showed returns in the 30% range due to the U.S. Federal Reserve's interest rate cuts and a rally centered on technology stocks. Domestic stocks recorded losses amid concerns over the performance of large technology companies and political uncertainties.

Overseas bonds achieved double-digit returns thanks to favorable interest income and the effect of the KRW-USD exchange rate rise despite rising market interest rates. Domestic bonds also posted returns in the 5% range as bond prices rose following two interest rate cuts by the Bank of Korea's Monetary Policy Committee in October and November. The return on alternative investments reflected increases in asset valuation and realized gains.

The final performance evaluation of the National Pension Fund's management will be confirmed by the Fund Management Committee around the end of June this year after review by the Risk Management and Performance Compensation Expert Committee.

Kim Tae-hyun, Chairman of the National Pension Service, stated, "Despite a challenging investment environment last year, including concerns over economic slowdown, ongoing geopolitical risks, the U.S. presidential election, and domestic political instability, the National Pension Service achieved the best performance for two consecutive years. This was the result of steadily improving fund management infrastructure through portfolio diversification of domestic and overseas assets, discovering quality investment opportunities via strategic partnerships with global asset managers, and strengthening the functions of overseas offices." He added, "Going forward, we will further enhance fund management capabilities by introducing a benchmark portfolio, operating a next-generation integrated overseas investment system, and recruiting overseas experts, while thoroughly managing risks to improve fund returns."