Thu Sep 12 00:41:08 UTC 2024: ## South Korea’s Pension Fund Pledges to Boost Domestic Investments Amid Capital Market Reforms

**SEOUL** – The Financial Supervisory Service (FSS) has highlighted the crucial role of the National Pension Service (NPS) in the success of ongoing capital market reforms in South Korea. The NPS, which has been actively expanding overseas investments in recent years, has pledged to prioritize domestic opportunities as part of its commitment to the reforms.

FSS Governor Lee Bok-hyun emphasized the importance of pension funds and asset managers as long-term investors in strengthening the capital market’s investment base. He cited the successful example of Japan’s public pension fund, whose increased domestic investments played a key role in the success of its market reforms.

In February, South Korea launched its own “Corporate Value-up Programme”, inspired by Japan’s reforms, aimed at revitalizing the domestic stock market. This program includes measures encouraging higher shareholder returns by listed companies.

The NPS, in a joint forum with the FSS and the Korea Exchange, declared its commitment to “value-up” policies, including a new index being developed by the Korea Exchange to track companies committed to enhancing market value.

NPS Chairman Kim Tae-hyun confirmed their continued efforts to boost the value of listed companies through outsourcing of investment and management responsibilities.

The Korea Exchange is set to release a new stock market index this month, specifically showcasing companies participating in the reform program by actively raising market value.

While the NPS has pursued aggressive overseas investments in recent years to secure higher returns and combat the depletion of its funds due to South Korea’s rapidly aging population, its commitment to domestic investments aligns with the government’s vision for a more robust and vibrant capital market.

The NPS, the world’s third-largest pension fund, held assets worth 1,147.0 trillion won ($857.12 billion) as of June, with 34.1% allocated to overseas stocks and 13.8% to domestic stocks.

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