South Korea’s Military Mutual Aid Association (MMAA) has logged the highest return on capital ratio for the past three consecutive years.

According to CEO Score, Korea’s corporate evaluation website, on September 18, MMAA recorded 14.83% return on capital in 2019, the highest rate of return among major retirement funds, for three consecutive years since 2017.

With an average return on capital of 20.03% per year over past three years, MMAA has seen a significant increase in return in fixed income and alternative investments since the inauguration of the current chairman Kim Do-ho, the website said.

Including MMAA, CEO Score compiled and analyzed the performance of Korea’s seven mutual aid associations, including the Public Officials Benefit Association (POBA), the Korean Teachers’ Credit Union (KTCU), the Scientists and Engineers Mutual-Aid Association (SEMA), the Police Mutual Aid Association (PMAA), the Korea Fire Officials Credit Union (KFOCU) and the Local Finance Association (LFA).

As these funds are under government ministries, any problem with fund management could lead to a burden on the government.

MMAA earned more than 1 trillion won for three consecutive years, including 1.42 trillion won in 2017, 1.42 trillion won in 2018 and 1.44 trillion won in 2019, according to the data.

By asset class, stock investment returns were the highest at 12.4%, followed by bonds and alternative investments.

In the case of returns on bonds and alternative investments, it has recorded a noticeable increase since the inauguration of the current chairman in January 2018. Returns on fixed income rose from 5.4% in 2017 to 9% last year, while returns on alternative investments rose to 1.6% to 6.8%.

Meanwhile, POBA, which logged the second-largest return on capital as of last year, invested 2.29 trillion won in stocks and earned 19.7% in returns. (Reporting by Kyoung-ho Lee)

Korea’s major mutual aid associations’ recent three-year performance (Return on capital)

MMAAPOBALFAPMAAKTCUSEMAKFOCU
3 year average20.03%12.73%12.32%11.29%8.69%7.44%6.59%
201914.83%9.19%13.63%7.36%8.43%8.45%6.56%
201822.76%17.36%12.21%8.15%8.54%6.85%5.53%
201722.5%11.65%11.12%18.37%9.09%7.02%7.69%