South Korea’s National Pension Service (NPS) will increase its alternative investments by six trillion won to more than 100 trillion won ($81.2 billion) by the end of this year, The Herald Business reported Thursday (May 21).

According to the report, the NPS Investment Management Committee agreed Wednesday (May 20) to allocate mid-term assets for fund management from 2021 to 2025. The pension service establishes a five-year fund management strategy every year, and analyzes future economic prospects, expected returns and risks for each group of assets to determine the target return rate and the target weight.

Alternative investments will be expanded to 102.9 trillion won at the end of 2020, up from the 2020 amount of 96.9 trillion won, based on the management plan approved last year. NPS’ alternative investment assets should increase by more than 15 trillion won in the period from March to the end of December this year, as it had 87.5 trillion won of assets at the end of February. 

The pension service’s total assets are forecast to reach 845 trillion won at the end of 2021, according to the plan approved by the committee yesterday. As it had assets of 736 trillion won at the end of 2019, it is expected that about 110 trillion won will be added in the next two years.