National Pension Service

National Pension Service

The National Pension Service (NPS) is the public entity administering South Korea’s national pension scheme, established via the National Pension Act promulgated in December 1986, with the National Pension Corporation formed in September 1987 and the system implemented in January 1988 (per official NPS history). It manages the National Pension Fund (NPF) on behalf of the Minister of Health and Welfare under policies set by the National Pension Fund Management Committee, aiming to maximize long-term returns while ensuring pension financial stability and providing old-age, disability, and survivor benefits. As of end-April 2026, NPF assets stood at KRW 1,670.7 trillion, positioning it as the world’s third-largest pension fund by total assets (per NPSIM official website). Cumulative contributions and investment income reached KRW 2,123.5 trillion, less expenses of KRW 452.8 trillion. Annualized returns since inception (1988–2025) were 8.04 percent, with strong recent performance including a record 18.8 percent return in 2025. The portfolio (end-April 2026) comprises domestic equity (25.1 percent), global equity (36.2 percent), domestic fixed income (17.6 percent), global fixed income (6.2 percent), alternatives (14.7 percent), and short-term/other assets, with global investments at 55.7 percent and external management at 51.9 percent of financial assets. Headquartered in Jeonju, NPS also conducts responsible investment and governance activities.