Safe Fund Management Top Priority

New CEO Jeon of National Pension Service to focus on recovery of public trust, safe fund investment

"I will try my best to restore the public trust in National Pension Service (NPS) now that I am the CEO, “ declared President Jeon Gwang-woo at his first media conference on Dec. 15 since he assumed the top office at NPS. The new top manager of NPS, who was formerly chairman of the Financial Service Commission, said he will try to have the public feel safe to let NPS take care of their lives after retirement.
Jeon said NPS will have 300 trillion won in funds next year to manage with the number of people receiving the monthly stipend to increase to over 3 million making year 2010 a very significant one for NPS. He said he will go all out to make NPS a top organization that guarantees welfare for the people.
CEO Jeon said he will focus on the public to regain confidence in NPS by expanding its profits from managing the retirement funds, which means that he will avoid making investments in risky areas, as he will give safe fund management the top priority while he runs NPS.
Jeon said he doesn’t think he got the appointment to run NPS because he is a welfare expert, to reply to a question posed by a reporter that was related to his major roles at NPS. As for the decisive approval rights, he said he can only do his best to generate the highest profits available through wise investment of the funds.
He said he could feel how high the top manager’s position at NPS is when he was named to take over the top post and he also felt Korea should take advantage of the NPS fund, the 5th largest such fund in the world as a leverage in international dealings.
Asked to comment on the fact that he is a former chairman of the Financial Services Commission, which is a cabinet ministerial level post, but became the head of NPS, Jeon said the function and public perception of his current job is more important; He thinks the CEO of NPS is a very important job and he will have to assume full responsibility for the new job.
So far NPS has been pursuing managing its funds under following guidelines: To gain the long-term stability and provide sustainable real values of the Fund by Developing the “Mid- and Long-Term Fund Management Plan” which helps generate stable real values of the reserve and contributes to the national economy as well; Constant investment in the public and welfare sector considering the national economy; Continued investment in the public and welfare sectors within a certain limit set by the Fund Management Committee;
Suggest the weight in the asset allocation for the investment in the public benefit and welfare by comparing the increase in marginal benefits with the increase in marginal cost.;
- Suggest the weight of asset allocation that is given to the public and welfare sectors, based on the comparison between the social utility increase and the opportunity cost of the Fund;
Flexible management of the Fund invested in the public and welfare sectors, reflecting interest rates on Treasury bonds and depository rates of the Public Capital Management Fund. Pursue Long-term investment by taking advantage of pension benefits’ long duration
Diversification of Investment Assets:
Actively participate in social infrastructure businesses invested by private capital; Continued efforts to diversify investments into real estate, venture capital, corporate restructuring, and overseas. Contribution to the national economic development such as capital markets and business developments;
Expand investments into blue chip bonds and stock, and contribute to the capital supply and capital markets developments. nw

President Jeon Gwang-woo of the National Pension Service.