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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August 2020

31Aug

Korean pension funds cushion pandemic impact in H1

South Korea’s pension funds took positive returns in the first half of this year, as they managed to weather the impact of the novel coronavirus on financial markets across the globe, disclosures showed Monday. The National Pension Service, Korea’s largest public pension fund with 752.2 trillion won ($635.5 billion) assets under management, posted a 0.5 percent return Friday as its stock losses were offset by fixed-income assets and alternative investments. By asset classes, from January to June, NPS took...

August 31, 2020
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May 2020
07May

S. Korea’s NPS joins int’l buyout of Portuguese toll roads operator Brisa

South Korea’s National Pension Service (NPS) joined Dutch pension manager APG Asset Management and Swiss Life Asset Managers for multi-billion dollar acquisition of a combined 81.1 percent stake in Portugal’s leading toll roads operator Brisa – Auto-Estradas de Portugal (Brisa). The consortium in the biggest-ever Portuguese buyout amidst an ongoing virus pandemic will assume 40.55 percent from London-based Arcus European Infrastructure Fund 1 (Arcus) and another 40.55 percent from Portuguese conglomerate Jose de Mello Group (JdM), according to...

May 7, 2020
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07May

S. Korea’s NPS joins int’l buyout of Portuguese toll roads operator Brisa

South Korea’s National Pension Service (NPS) joined Dutch pension manager APG Asset Management and Swiss Life Asset Managers for multi-billion dollar acquisition of a combined 81.1 percent stake in Portugal’s leading toll roads operator Brisa – Auto-Estradas de Portugal (Brisa). The consortium in the biggest-ever Portuguese buyout amidst an ongoing virus pandemic will assume 40.55 percent from London-based Arcus European Infrastructure Fund 1 (Arcus) and another 40.55 percent from Portuguese conglomerate Jose de Mello Group (JdM), according to industry...

May 7, 2020
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December 2019

27Dec

South Korea. finalizes guidelines on pension fund’s shareholder activism

South Korea on Friday approved proposed guidelines for shareholder activism by the country's largest state pension fund, paving the way for the fund to press companies it holds stakes in to dismiss board members over breach of trust and other illegal activities. "The guidelines are part of efforts to manage the National Pension Service in a more transparent and fair manner," Health and Welfare Minister Park Neung-hoo said in a meeting of the management committee -- the highest decision-making...

December 27, 2019
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September 2019

05Sep

Samsung Securities Signs MOU with Canadian Pension Fund for Infrastructure Investment

Samsung Securities Co. has joined hands with a foreign pension fund for the first time in the domestic investment banking industry to expand its reach in global infrastructure investment. The company announced on Sept. 4 that it has signed a memorandum of understanding (MOU) on mutual business partnership with Montreal-based institutional investor Caisse de depot et placement du Quebec (CDPQ) at the company’s head office in Quebec, Canada, on Sept. 3 (local time). Founded in 1965, CDPQ...

September 5, 2019
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03Sep

South Korea. Stalled reform

After 10 months of discussion, a committee on national pension reform last week suggested three options, all of which fall short of ensuring the long-term sustainability of the pension scheme, now under increasing strain. Differences in views between labor and business representatives barred the panel formed in October under the Economic, Social and Labor Council from working out a single proposal. The first option calls for freezing the income replacement rate, which is set to be lowered to 40...

September 3, 2019
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