National Pension Service to Boost Stock Investment

The National Pension Service will boost its investment in stocks to 30.3 percent, up from 16.4 percent, and slightly reduce investment in bonds from 81.5 percent. Its investment in local stocks will jump from the current W29 trillion to W55 trillion and investment in overseas stocks from W6 trillion to up to W20 trillion (US$1=W938).

The Ministry of Health and Welfare said Thursday it finalized the allotment plan for 2008. A ministry official predicted the NPS total income would reach W93.6 trillion next year. Of that, W6.9 trillion will be paid out in pensions and the remaining W86.7 trillion invested in stocks, bonds and real estate.

According to the investment plan, W15.7 trillion and W10.35 trillion will be newly invested in local and overseas stocks. W56.09 trillion will be put in local bonds, W1.65 trillion in overseas bonds and W2.9 trillion in alternative investments.

Some W2.9 trillion will be invested in social overhead capital projects like roads and real estate next year, up W900 billion from this year's W2 trillion. The ministry aims for a 6.8 percent yield on those investments. The average earning rate over the last three years has been 6.36 percent.