Gov't plans new NPS framework amid fund’s growing overseas investments, won’s sharp decline

The government plans to establish a new business framework for the National Pension Service (NPS) amid its growing overseas investments and the won’s sharp decline, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said Wednesday. As Koo explained, the framework is intended to ensure that the state-run pension fund not only fulfills its primary goal of optimizing investment returns but also contributes to stabilizing the currency market. However, he did not specify how the framework would achieve these dual goals, which may conflict, as NPS might need to sell its U.S.-denominated assets at the expense of returns to slow the won’s depreciation. Koo additionally emphasized that the framework should not be misperceived as a mere short-term tool to mobilize NPS in service of curbing the won’s decline. “We have launched discussions to establish a new framework for NPS to harmonize the fund’s profitability with foreign exchange market stability,” Koo said during a press conference at Government Complex Sejong. “We will discuss both short-term actions possibleWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times