Korea’s National Pension Service may own Credit Suisse bonds

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Korea’s National Pension Service may own Credit Suisse bonds

The National Pension Service (NPS) is reviewing the operations of a fund manager or fund managers that invested over 130 billion won ($99 million) of pension money into Credit Suisse bonds.    
 
Korea's pension held 135.9 billion won of Credit Suisse bonds as of late last year, according to data the NPS provided to lawmaker Cho Hye-young. The figure is 0.21 percent of all overseas bonds held by the NPS.  
 
“The fund manager decides where to invest the funds,” the NPS said. “But we are actively communicating with them in reflection of the seriousness of the issue.”
 
Credit Suisse, a 167-year-old bank and the second-largest lender in Switzerland, will be consumed by UBS with the support of the Swiss National Bank for around $3.2 billion.  
 
Credit Suisse has been struggling for years. In 2022, it recorded its worst loss since the global financial crisis. Last week, investor confidence collapsed after it acknowledged “material weakness” in its bookkeeping. The collapse of U.S. banks, including Silicon Valley Bank (SVB), exacerbated the fears.  
 
The NPS, the world’s third-largest pension fund, was also holding onto the securities of other financial institutions that have failed.
 
The pension fund held 138.9 billion won of SVB shares and bonds, and 3.5 billion won in Signature Bank as of late last year.
 

BY JIN MIN-JI [jin.minji@joongang.co.kr]
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