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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 to alleviate financial burdens on pension contributors, especially on future generations
    Stability
    To manage the fund within acceptable risk and volatility parameters
    Public Benefit
    To take into account the spillover effect on domestic economy and financial markets, given the sheer size of the Fund and the objective of the National Pension Plan targeting the entire nation
    Liquidity
    To ensure sufficient liquidity to meet its pension payment obligations and seek ways in advance to minimize shocks on domestic financial markets,in particular when disposing of investment assets
    Sustaina-
    bility
    To fulfill its fiduciary duty to ensure 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