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Korea's state pension fund surpasses 1.5 quadrillion won, buoyed by strong investment returns

Published: 09 Apr. 2026, 18:03

A person enters the National Pension Service's headquarters in Seodaemun District, western Seoul, on April 8. [NEWS1]

The state pension fund, which supports the public’s retirement security, surpassed 1.5 quadrillion won ($1.01 trillion) in reserves for the first time, mostly through investment returns.

The fund’s reserves stood at 1.54 quadrillion won as of the end of January, according to the National Pension Service (NPS), which manages the fund, on Thursday.

Since its establishment in 1988, the fund has accumulated a total of 1.05 quadrillion won in investment returns as of January. This accounts for 68 percent of its total reserves, showing that the fund has significantly increased its assets through investment.

The total amount of insurance premiums and other contributions paid by the public stands at 928.5 trillion won. After excluding 438.9 trillion won that has been paid out as pensions or used for management costs, the remaining principal amounts to about 489.6 trillion won. As a result, roughly two-thirds of its current 1.54 quadrillion won in assets have been generated through investment.

In January alone this year, the NPS recorded a return of 81.5 trillion won. Analysts say this reflects the effectiveness of a more aggressive asset allocation strategy centered on equities, moving away from its previous bond-focused approach.

Equities accounted for the largest share of the fund’s investments at 58.4 percent as of the end of January. This was followed by bonds at 26 percent and alternative assets, such as real estate and infrastructure, at 15.2 percent. In terms of asset allocation, financial investments, including domestic and overseas stocks and bonds, account for 99.9 percent of total assets, amounting to 1.539 quadrillion won. The remaining 1.1 trillion won is allocated to welfare and other sectors.

On the expenditure side, a total of 425.4 trillion won has been paid out as pensions since the fund’s establishment. Management and operational costs have totaled 13.5 trillion won.

“Going forward, we will continue to manage the nation’s valuable retirement funds in a stable manner,” an official from the NPS said.

The fund’s investment performance is disclosed monthly on the NPS's Investment Management website.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM JI-HYE [[email protected]]