Tuesday December 30, 05:45 AM
SKorea's pension fund set to post first loss: ministry
SEOUL (AFP) - South Korea's state pension fund -- the country's largest institutional investor -- will post its first-ever loss this year due to tumbling stock prices, officials said Tuesday.
The Ministry of Health, Welfare and Family Affairs, which supervises the fund, said the National Pension Service posted a 0.75 percent loss, amounting to 1.76 trillion won (1.4 billion dollars), as of December 26.
It marks the first annual loss since the fund, which now has more than 230 trillion won in holdings, was created in 1988.
The ministry said the problem stems from its investment in stocks, which reported a loss of 41.20 percent.
South Korea's benchmark KOSPI stock market index has fallen nearly 40 percent so far this year amid the global financial meltdown, with overseas bourses similarly hard hit.
Last year the fund reported a 7.05-percent return on assets.
The ministry said Monday the pension fund would reduce its stockholdings next year from the current 29.7 percent to 20.65 percent of total assets.
It plans to increase its holdings of bonds and other investments from 66.4 percent to 73.4 percent.
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