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Investment Principles

As outlined in the Guideline for National Pension Fund Management, the National Pension Service is fully committed to managing and investing the National Pension Fund in line with the mandate from the Minister of Health and Welfare and pursuant to six investment principles: Profitability, Stability, Public Benefit, Liquidity, Sustainability and Independence.

Investment Principles

  • Profitability

    To pursue the highest possible returns with an aim of alleviating financial burdens on pension contributors, especially on future generations

  • Stability

    To manage the fund within acceptable risk and volatility levels of the overall portfolio

  • Public Benefit

    To take into account the spillover impact on domestic economy and financial markets, given the considerable size of the fund and the objective of the national pension plan targeting the entire nation

  • Liquidity

    To secure liquidity for the purpose of meeting the pension payment obligations and seek ways in advance to minimize shocks on domestic financial markets, in particular when disposing of investment assets

  • Sustain-
    ability

    To fulfill the fiduciary duty with an view to enhancing the sustainability of investment assets, particularly by integrating environmental, social and governance (ESG) factors into investment decision-making

  • Indepen-
    dence

    To comply with the aforementioned principles and ensure that such principles are not compromised for other purposes