November 2021
22Nov

Move to hinterland triggers brain drain at Korea’s mega pension fund

Earlier this year, Lee left her fund management job at South Korea's national pension fund, the world's third-largest, fed up with long commutes between her home in Seoul and her office in Jeonju, 200 kilometers away. For four years, Lee lived in a studio apartment in Jeonju, a city of 658,000, on weekdays, and traveled back to Seoul for the weekend. She feared her family would break up if she didn't make the hard decision to quit. Lee is one of...

November 22, 2021
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16Nov

Experts Concerned About Senior Poverty in S. Korea as Aging Society Takes Speed

Experts are increasingly concerned over the issue of senior poverty caused by a lack of pension programs and other senior welfare policies as South Korea is becoming an aging society at twice the speed of Japan. The Korea Economic Research Institute (KERI) conducted a survey of 500 senior respondents over 65 years of age from South Korea and Japan, which showed that fewer South Korean seniors receive pensions than their Japanese counterparts. Read also Bangladesh. Guardian Life launches “Ajibon Pension Plan”...

November 16, 2021
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October 2021
27Oct

South Korean pension fund to invest in Bitcoin ETF: Report

South Korea’s public pension fund, the Korean Teachers’ Credit Union (KTCU), is reportedly looking to gain exposure to Bitcoin (BTC) via a crypto exchange-traded fund (ETF). Read also UK. PensionBee Partners with Plaid to Leverage Open Banking KTCU, one of the largest institutional investors in South Korea, is considering investing in a pure Bitcoin ETF or Bitcoin-linked ETFs in the first half of 2022, local news agency The Korea Economic Daily reported Monday. Read also US Public Pension Fund Invests In Bitcoin...

October 27, 2021
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September 2021
29Sep

16.5% of S. Korea’s population aged 65 and older in 2021: report

People aged 65 and older made up 16.5 percent of South Korea's population this year, a report showed Wednesday, highlighting concerns that the fast-aging demographic transition could pose a drag on the country's economy. According to the report by Statistics Korea, the number of people aged 65 and older stood at 8.53 million this year. The South Korean population is projected to peak in 2028 before going on a downward curve, the report showed. However, the graying of South Korea will accelerate,...

September 29, 2021
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13Sep

Korea’s aging population to sap fiscal health: Fitch

The fast-paced aging of South Korea’s population is likely to undermine the fiscal health of Asia’s fourth-largest economy in the long run amid soaring debt, credit ratings agency Fitch Ratings said Monday. The aging population, coupled with a declining fertility rate of fewer than one child per woman, could leave Korea exposed to higher risks as rising government spending could become a less effective means of boosting nationwide productivity. Read also Australia. Most vulnerable excluded from Disability Support Pension Fitch urged Korea...

September 13, 2021
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06Sep

South Korea. State pensions face mounting calls for reform

Calls are expected to grow for the reform of four state-run pension funds, as nearly 60 trillion won ($51 billion) will be allocated for public spending next year, up 6.2 percent from this year's 55.8 trillion won. The year-on-year increase will require a greater amount of taxpayers' money to slow the hemorrhaging of the funds, as a rapidly aging society and overall decrease in labor productivity cause government welfare expenditures to snowball. Mandatory spending by law cannot be curbed unless a...

September 6, 2021
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June 2021
28Jun

DIY pensions gather steam in Korea

Three years ago, a 32-year-old software developer surnamed Park bought an individual retirement pension plan, not knowing exactly what his corporate pension plan was as an employee. Holding a portfolio mix of stock funds and a bond fund, with one of the stock funds returning as high as 43 percent since inception, the private retirement plan is now offering him a financial return, a tax deduction and a sense of relief. “I have doubts whether I‘ll be able to get the...

June 28, 2021
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February 2021
24Feb

S.Korea’s state-run pension fund posts 9.7% return in 2020 – health ministry

South Korea's state-run pension fund posted a provisional annual return rate of 9.7% in 2020, Health Minister Kwon Deok-cheol said on Wednesday, as the COVID-19 pandemic drove volatility in global financial markets. The National Pension Service (NPS) is the world's third-largest pension fund, with 833.7 trillion won ($750.39 billion) in assets as of the end of 2020. Last year's annual rate of return was lower than 2019's 11.3%, which was the highest on record since the National Pension Service Investment Management,...

February 24, 2021
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October 2020

27Oct

South Korea pension fund to oppose LG Chem’s battery split-off plan

It cited concerns about damage to shareholder value, including the possibility of diluting the equity value. LG Chem said in a statement that it very much regrets that NPS opposes the plan when most domestic and foreign proxy advisers including Institutional Shareholder Services back it, adding it will actively communicate with shareholders. "Although NPS is the second-largest shareholder of LG Chem...it is likely that dissenting votes would have little impact as most proxy advisers have recommended endorsement of...

October 27, 2020
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September 2020

14Sep

S. Korea’s state pensions to face steep shortfall in 20 yrs: report

South Korea’s state-managed pension and insurance funds may dry up earlier than expected, suggesting the need of dramatic changes to cope with demographic trends and funding shortfalls in the foreseeable future, a government report projected. According to the fiscal outlook report for 2020-2060 by the Ministry of Economy and Finance, state-run National Pension Service, the world’s third largest pension fund, is estimated to return to a net loss by 2040 if conditions remain unchanged from now. The analysis projects...

September 14, 2020
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