Last year, the National Pension Service's revenue generation rate, which recorded the highest level ever, plummeted below 1% this year. This is a result of the sharp decline in the revenue from overseas stock investments that drove last year's strong performance. Conversely, the domestic stock revenue, which performed poorly last year, rebounded with the change of the year.
The National Pension Fund Management Headquarters noted that as of the end of January 2025, the revenue generation rate, which includes revenue from domestic and foreign stocks, bonds, and alternative investments, was recorded at 0.85% (provisional, asset-weighted revenue generation rate).
By asset, as of the end of January, domestic stocks recorded 5.38% and overseas stocks recorded 1.27%. In 2024, the annual domestic stock revenue was -6.94%, and the overseas stock revenue was 34.32%. The sentiment for these two asset classes changed with the new year.
The Management Headquarters explained that regarding domestic stocks, "the operating revenue was good due to favorable supply and demand based on valuation attractiveness." In connection with overseas stocks, they positively evaluated that "despite the uncertainty of U.S. President Donald Trump's policies, the revenue increased due to alleviated concerns over inflation and good results from major corporations."
As of the end of January, domestic bonds showed a revenue of 0.83%, while overseas bonds reported -2.53%. The Management Headquarters stated, "Despite the Monetary Policy Committee's decision to maintain the benchmark interest rate in January, the operating revenue was good due to domestic and foreign political uncertainties and concerns over economic slowdown," and added, "Although overseas bonds saw a decline in market interest rates due to alleviated inflation concerns, the operating revenue was poor due to the drop in the won/dollar exchange rate."
The alternative investment revenue was -1.90%, and the short-term funds revenue was -0.95%. The National Pension Service indicated, "The revenue from alternative investment assets mainly comes from interest, dividends, and foreign exchange gains or losses due to won/dollar exchange rate fluctuations." Alternative investments are subject to a fair value assessment (once a year) at the end of the year. The year-round revenue does not reflect the amount assessed at fair value.
As of the end of January this year, the National Pension's fund reserves totaled 1,224 trillion won. More specifically, domestic stocks accounted for 149.258 trillion won, overseas stocks for 438.823 trillion won, domestic bonds for 343.904 trillion won, overseas bonds for 85.958 trillion won, alternative investments for 203.466 trillion won, and short-term funds for 1.889 trillion won.
Since the National Pension Service was launched in January 1988 with fund reserves at a level of 530 billion won, it surpassed 100 trillion won in 2003, 200 trillion won in 2007, and 300 trillion won in 2010. It has continued to grow annually, reaching 427 trillion won in 2013, 621 trillion won in 2017, and 1,036 trillion won in 2023.