South Korea’s National Pension Fund Reports 10.27% Yield Through October, Reversing Last Year’s Losses

SEOUL — South Korea's state-run pension fund has seen a return of over 10 percent through the end of October, driven by strong performance in both domestic and international stock investments, the fund's operator announced on Monday.

According to Yonhap News Agency, the national pension fund reported a 10.27 percent yield in the January to October period of this year. The value of its assets under management reached 997.38 trillion won (US$739 billion) as of the end of October. This comes as a significant reversal from last year, when the fund experienced its worst return at a negative 8.28 percent amid global market volatility and economic tightening in major economies.

The improvement in returns this year was attributed to a rebound in the global markets and favorable currency rates, according to the fund's operator.

In terms of asset classes, the fund saw a 17.25 percent return on its investments in local stocks and a 20.15 percent yield in overseas stocks. Furthermore, the NPS reported a 6.85 percent return from its investment in local bonds and a 6.37 percent yield from its investment in alternative assets, such as real estate.

For context, the NPS had seen its investment returns stand at 10.77 percent in 2020 and 10.86 percent in 2021.

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