One Trillion More to Be Invested in National Pension Stocks Next Year

Investment in stocks of a national pension will increase by one trillion next year.

According to the 2005 National Pension Employment Plan issued by the Ministry of Health and Welfare on May 30, the amount of money to be invested in pension stocks next year will be 5 trillion, which is an increase of one trillion over this year. It also means the rate will be raised from 9.4% to 9.7%. A total investment of four trillion represents 700 billion from within the nation, and 300 billion outside the nation.

Meanwhile, investment in a bond occupying the biggest portion in the fund will be 50 trillion and 221.2 billion down from one trillion and 290 billion this year. The ministry will invest one trillion and 600 billion in realty and social capital, which is increased to 600 billion over this year.

Accordingly, the national pension reserve fund, which is expected to be 139 trillion and 488.3 billion at closing of this year, will be increased to 165 trillion and 237 billion.

The ministry also instituted a new policy called “permitted limit,” which would allow them to adjust an investment in accordance with market activity.

An official from the Health and Welfare Ministry revealed, “The pension fund committee will diversify the fund’s investments to avoid excessive risk.”

The ministry recorded an earnings rate of 7.98% and 8.59% in finance.

Seong-Yub Ra cpu@donga.com