State Pension Funds Invest

State-run pension funds are putting fresh investments into stocks as part of the government's policy to boost Seoul markets.

The Korea Teachers Pension put 50 billion won ($37 million) into mutual funds Monday; the funds are operated by eight investment trust companies.

Government-run funds plan to invest a total of 800 billion won in stock markets through mutual funds this month.

The Korea Teachers Pension entrusted 10 billion won each to Mirae Asset and Korea Investment Trust and 5 billion won each to six other companies.

The pension fund plans to invest another 220 billion won in stocks by the end of this year.

"We have been reluctant to invest in stocks, since the market has been changeable," said an official at the pension fund. "Now, we can consider an increase in investment, since the share values have recently tumbled." But the official added that the pension fund will remain cautious in investing in stocks, because it is uncertain the market has hit bottom.

The National Pension Corporation, which already has 3.4 trillion won in stock funds, plans to make new investments of 1.4 trillion won in stocks this year.

The Government Employees Pension Corporation, which invested 400 billion won through stock funds in 1999, said it has no ability to make new investments.

by Chung Jeh-won