South Korea’s National Pension Fund is expected to post a return exceeding 15 percent for 2024, a record high for the second consecutive year following 2023.

According to industry sources on Sunday, the Ministry of Health and Welfare and the National Pension Service (NPS) estimate that the fund’s year-end return will be in the 15 percent range. Its return stood at 12.57 percent as of late November 2024, according to data announced in January 2025. The previous all-time high was 2023’s 13.59 percent, and the official return rate for 2024 is set to be released at the end of February 2025.

The strong performance was primarily driven by overseas stock investments, which delivered returns in the 30 percent range. Alternative investments also saw substantial gains, with returns doubling from the previous year to nearly 10 percent.

The pension fund increased its allocation to overseas stocks and alternative investments in 2023 while strengthening its investment team by recruiting private-sector experts. The strategy has yielded tangible results within a year.

“We are expanding overseas investments not only in equities but also in alternative assets, particularly real estate. The impact of overseas performance on overall returns is expected to grow,” an NPS official said.

NPS introduced new measures to enhance returns, including granting its fund management center greater investment discretion, in 2024.

Among them is the reference portfolio, implemented in 2025, which allows NPS to expand its allocation to alternative investments and diversify its investment scope. The pension fund also increased its direct management of overseas stock investments by 10 percentage points in the latter half of 2024 as part of the new measures.

[ⓒ 매일경제 & mk.co.kr, 무단 전재, 재배포 및 AI학습 이용 금지]