2004
Annual Report on National Pension Fund Management

1. Formation of Fund and Investment Environment
1.1. Formation and Management of the Fund 2
1.2. Investment Environment 7

2. Investment Performance
2.1. Overall Performance 12
2.2. Investment Performance in the Financial Sector 16
2.3. Investment Performance In the Public Sector 32
2.4. Investment Performance in the Welfare Sector 34

3. Investment Policies of the National Pension Fund in 2004
3.1. Purpose and Direction of Fund Management 38
3.2. Principles of Investment 39
3.3. Guidelines of Fund Management in 2004 40
3.4. Major Issues and Changes Related to Fund Management 42

4. Management System of the Fund
4.1. Management System and Work-flow 46
4.2. Fund Management Committee and Evaluation Committee 49
4.3. Ministry of Health and Welfare 52
4.4. National Pension Service 53
4.5. Fund Management Center 56
4.6. National Fund Research Institute 60




5. Finance and Account
5.1. Fund Accounting 64
5.2. Financial Statements 67
5.3. Auditors' Report 72

6. Statistics
[Table] Reserved Fund of the National Pension 74
[Table] Yearly Revenue & Expenditure of the Fund 75
[Table] Yearly Asset Allocation of the Fund 76
[Table] Yearly Rate of Return on Investment 78
[Table] Cumulative Yearly rate of Return on Investment 79
[Table] Summary of the Fund Management Committee Meetings
Held in 2004 80
[Table] Yearly Number of Workplace and Number of Insures
Persons 81
[Table] History of National Pension Scheme in Terms of Coverage
Expansion 81
[Table] Payments by Type and by Year 82
[Table] Intermediate Financial Projection of the National Pension
Fund 83