보건복지부 영문홈페이지

The 2024 Target Excess Return for the National Pension Fund Set at 0.20%p

- Results of the 6th Meeting of the FMC -

The National Pension Fund Management Committee (FMC, chaired by the Minister of Health and Welfare) held its sixth meeting of the year on December 15, 2023.

The Committee reviewed and approved the 2024 Target Excess Return and the Extension of the NPF’s Temporary Strategic Currency Hedge Ratio Adjustment Period.

Each year, the NPFMC suggests the NPF’s active management level to the National Pension Service by setting the target excess return for the following year. At this meeting, it decided to maintain the target excess return for 2024 at 0.20%p, which is the same rate as that set in 2023.

Furthermore, the FMC decided to extend the NPF’s temporary strategic currency hedge ratio adjustment period until the end of 2024.

In December 2022, the FMC increased the strategic currency hedge ratio on a temporary basis from 0% to 10% according to market circumstances in order to hedge against the potential currency losses deemed likely to result from the stabilizing exchange rate after steep increases.

The FMC decided to extend the strategic currency hedge ratio adjustment period until the end of 2024 in order to cope with potential exchange loss, given the still high USD/KRW.

According to the decision, the NPS plans to enter into a currency swap agreement with the Bank of Korea.

Also, the FMC was briefed by the National Pension Service Investment Management on the NPF Performance Status as of the end of September 2023. The National Pension Fund amounted to KRW 984 trillion at the end of September 2023, with a return of 8.66% and its earnings reaching KRW 80.3 trillion, making up for most of the loss on valuation incurred in 2022.

Cho KyooHong, Minister of Health and Welfare, urged the National Pension Fund Investment Management to “do its best in managing the Fund by proactively managing risks and responding to the market, given that it is expected to be volatile in 2024 as well.”///