The National Pension Service (NPS) and the Ministry of Health and Welfare (MOHW) will start work on a new system platform for the state pension scheme from next year, with a total of 332.8 billion won ($276.5 million) being invested until 2024.

Korea Institute of Public Finance has conducted a preliminary feasibility study since September 2019 and gave NPS the green light to start the project, which aims to provide a personalized pension service, make business more efficient, and improve the profitability of investments.

“We welcome the results of the preliminary feasibility study,” said Dae-soon Kim, head of the digital innovation department in NPS. “We will thoroughly prepare for the successful implementation of this project.”

NPS plans to create systems for direct investment in global assets and organize a risk management framework for various asset groups through the project. It will be a timely upgrade for NPS, whose overseas alternative investment had risen by 4.8 trillion won at the end of the first quarter. 

“The new system will provide customized services to 22 million national pension subscribers and contribute to the stable operation of the NPS’ assets, which will reach 1,000 trillion won in 2024,” said Suran Lee, director of the National Pension Policy division at the MOHW. (Reporting by Hyewon Chang)