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State pension's return hits 10-year high in 2019

All News 08:34 February 11, 2020

SEOUL, Feb. 11 (Yonhap) -- South Korea's state pension fund posted the highest return rate in 10 years in 2019 due mainly to bullish stock markets at home and abroad, its operator said Tuesday.

The state pension fund registered a preliminary return rate of 11 percent last year, earning approximately 70 trillion won (US$59 billion), according to the National Pension Service (NPS).

It was a sharp turnaround from a negative return of 0.92 percent for 2018 and the largest yield since 2010.

In 2018, the state pension fund logged the second negative return rate on tumbling equity markets at home and abroad since the global financial crisis in 2008.

State pension's return hits 10-year high in 2019 - 1

Major pension funds in the United States, Japan and the Netherlands also chalked up negative yields in 2018.

The South Korean state pension fund's turnaround last year was attributed to strong domestic and overseas stock markets combined with a weak Korean currency against the U.S. dollar.

The cumulative return rate of the state pension fund, which was launched in 1988, stood at 5.7 percent as of November last year, with its total profit reaching 357 trillion won

The NPS is the world's third-largest pension fund, with assets under its management totaling nearly 724 trillion won as of end-November.
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