The National Pension Fund Management Committee held its 7th meeting of 2025 on December 15 at the Government Complex Seoul. The meeting reviewed and approved the extension of the temporary strategic currency hedging period and the plan for setting the target excess return rate.
The committee decided to extend the adjustment period for the temporary strategic currency hedging ratio of the National Pension Fund until 2026. This measure is to prepare for currency losses following the stabilization after a sharp rise in exchange rates. The National Pension Service plans to extend the foreign exchange swap contract with the Bank of Korea until the end of 2026.
The committee also reviewed and approved the plan for setting the target excess return rate. The target excess return rate is the goal rate of return that the Fund Management Headquarters must achieve beyond the benchmark rate, and the cumulative target excess return rate for 2022-2026 was set at 0.248%p.
Minister of Health and Welfare Jung Eun-kyeong expressed gratitude to the committee members and staff of the Fund Management Headquarters for their efforts to improve fund returns in a challenging financial environment. She emphasized the need to re-examine the fund management system to protect the profitability of the National Pension Fund.