The National Pension Fund Management Committee (Chairman: Eun-Kyung Jung, Minister of Health and Welfare, hereinafter referred to as the Fund Committee) held its 7th meeting of 2025 at the Government Complex Seoul on December 15. In this meeting, the committee reviewed and resolved the extension of the temporary strategic currency hedging period and the plan for setting the target excess return rate.
The Fund Committee reviewed and resolved the proposal to extend the adjustment period for the temporary strategic currency hedging ratio of the National Pension Fund until 2026. Last December, the committee extended the temporary strategic currency hedging plan until 2025 to prepare for currency losses following the stabilization after a sharp rise in exchange rates. This year, with exchange rates still at high levels, the committee decided to further extend the temporary strategic currency hedging period until next year.
The Fund Committee also reviewed and resolved 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 of return, and it is used as an evaluation criterion for relative performance in target performance bonuses. The committee resolved to set the cumulative target excess return rate for 2022-2026 at 0.248%p, considering the need for excess returns and ongoing financial market uncertainties.
Minister of Health and Welfare Eun-Kyung Jung expressed gratitude to the members of the Fund Management Committee and the staff of the Fund Management Headquarters for their efforts to improve fund returns amid challenging domestic and international financial environments in 2025. She also urged them to continue closely monitoring and responding to the market in 2026 to achieve good results. Additionally, she emphasized the need to reassess the fund management system as the scale of the National Pension Fund is expected to grow further.