SEOUL, KOREA - The National Pension Service will invest 4.95 trillion won in the domestic stock market next year. This is 30 percent higher than the target amount of 3.80 trillion won set aside for this year. The Ministry of Health and Welfare held a fund operation committee meeting on June 13 and approved the 2015 National Pension Fund operational plan. According to the plan, the total amount of the fund for additional investment next year is 38 trillion won.

 

By asset class, the target amounts for domestic stocks and bonds were highest with 20.0 percent and 52.9 percent, respectively. For overseas stocks and bonds, the shares were 11.6 percent and 4.0 percent each. The ratio for alternative investment including real estate, social infrastructure, and private equity funds was set at 11.5 percent. By amount, domestic stocks and bonds accounted for 24 trillion won, followed by overseas stocks and bonds with 10 trillion won and alternative investment with 4 trillion won.

 

Comparing to the end of last year, the share of domestic bonds would be reduced 3.2 percentage points from 56.1 percent while that for alternative investment rising 2.1 percentage points from 9.4 percent. The ratio of domestic stocks will rise 0.3 percentage point from 19.7 percent.

 

The committee predicted the total national pension fund size to be 484 trillion won by the end of this year from 426 trillion won at the end of 2013. As of the end of 2015 it was projected to rise to 532 trillion won. The estimated rate of return for the financial assets last year was determined to be 4.16 percent.