The National Pension Service (NPS; Korean: 국민연금공단; Hanja: 國民年金公團; RR: Gukminyeongeumgongdan) is a public pension fund in South Korea. It is the third largest in the world[1] with over $800 billion in assets, and is the largest investor in South Korea.[2]
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Native name | 국민연금공단 國民年金公團 |
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Romanized name | Gukminyeongeumgongdan |
| Company type | Government-linked company Pension fund (Sovereign wealth fund) |
| Industry | Investment management |
| Founded | 1988 |
| Headquarters | Deokjin District, Jeonju, South Korea |
Key people | Kim Sung Joo, chairman and chief executive officer |
| Owner | Government of South Korea |
| Parent | Ministry of Health and Welfare |
| Website | www |
It is looking to buy a portfolio of blue-chip stocks from emerging markets.[3][4]
On January 30, 2017, NPS opened up an office in New York City's One Vanderbilt.[5]
The NPS is currently[when?] in annual surplus, recent surpluses have been between 1% and 5% of GDP.[6]
Timeline
- December, 1986 – Promulgated the Nation Pension Act
- September, 1987 – Established the National Pension Corporation
- January, 1988 – Implemented the national pension system (Limited to workplaces with 10 or more full-time employees)
- January, 1992 – Compulsory coverage included workplaces with five or more full-time employees
- January, 1993 – Commenced Special Old-age Pension benefit payment
- April, 1995 – Established the National Pension Research Institute
- July, 1995 – Compulsory coverage was extended to farmers and fishermen in rural areas
- August, 1995 – Compulsory coverage was extended to workplace-based foreigners
- April, 1999 – Compulsory coverage expanded to majority population in Korea (compulsory coverage in urban areas)
- November, 1999 – Launched the National Pension Fund Management Center
- July, 2003~2006 – Gradually expanded compulsory coverage to corporations and workplaces with less than five full-time employees
- July, 2007 – Renamed as the "National Pension Service"[7]
- May, 2009 – Commenced the Retirement Planning Service
- May, 2009 – Launched NPS International Service Center
- January, 2011 – Established NPS International Center (Integrated the former International Cooperation Department and the NPS International Service Center)
- January, 2011 – Consigned the affairs in relation to collection of contribution to the National Health Insurance Service (NHIS)
- April, 2011 – Implemented a system for assessment and registration of the disabled (all levels), in accordance with the Welfare of Disabled Persons Act
- October, 2011 – Commenced support programs for the disabled
- December, 2012 – Determined the scope of income of an insured under the National Basic Living Security Act
- July, 2014 – Support for the Basic Pension operation
- January, 2015 – NPS headquarters relocation to Jeonju
- December, 2015 – Implementation of Retirement Planning Service
- February, 2017 – NPSIM(National Pension Service Investment Management) relocation to Jeonju
Solvency
The scheme is currently in annual surplus. According to projections published 27 January 2023 by the NPS, at the current contribution rates and replacement rate, surpluses are projected to remain until 2041, and the fund to remain solvent until 2055. Due to demographic changes projected to continue, in order for the scheme to remain solvent in the long term it is suggested that, in the next few years, there be an adjustment to the contribution rate somewhere between 1 and 2%.[8]