National Pension Service increases overseas stake

Economy

Published: 16 May. 2016, 20:31

National Pension Service increases overseas stake

The National Pension Service, which is a major influence on the Korean stock market, has decided to increase its investments in overseas stocks.

The pension service’s fund management committee on Monday decided to increase its overseas equity investment to 35 percent by 2021, up from the 24.3 percent made last year. Investments in the local stock market will be cut back from 75.7 percent to 65 percent by 2021.

The move is largely because the profit return on local assets has been falling. Last year, the fund’s return on investment in local stocks was 1.67 percent, whereas overseas stock investment profit return was 5.73 percent.