- October 1, 2021: Vol. 13, Number 9

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NPS, Teachers’ Pension to expand investment in alternatives

by Jennifer Molloy and Kali Persall

South Korea’s National Pension Service (NPS) is planning to increase its proportion of its alternative investments to up to 15 percent of its total operating assets by 2024, sources with knowledge of the matter told The Korea Times.

NPS, the world’s third-largest pension fund, has more than KRW 900 trillion (US$773 billion) in assets under management. The fund is planning to establish a division to explore opportunities beyond the fund’s conventional investment metrics.

NPS’ current proportion of alternative investments stands at 10.4 percent, or KRW 94.6 trillion (US$81 billion). Among alternative investments, overseas real estate accounted for KRW 27 trillion (US$23 billion) and overseas infrastructure for KRW 18 trillion (US$15 billion).

And by the end of 2021, the US$20 billion Korea Teachers’ Pension plans to increase its allocation to global alternative assets to more than 24 percent (from 20 percent), or about US$700 million, according

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