The National Pension Service of South Korea (NPS) has issued a request for information (RFI) to develop an upgraded information technology system as it tries to improve its investment and risk management and achieve higher investment returns.
Open until February 4, the RFI asks interested parties to propose ideas for an integrated working platform that would create an intelligent working environment and improve returns for the 772.2 trillion won ($701.3 billion) fund. NPS will give detailed plans and select contractors this year, and wants the new system operational in 2025.
The pension fund has approved a range of global investments in the past few years as it makes a bigger allocation to foreign assets in search of higher returns. It needs a better system to allow more efficient decision-making and portfolio management so that domestic operations and overseas offices can work together seamlessly.
NPS also wants to be able to manage assets on a multi-currency basis. An upgrade would enable the fund to manage its global portfolio of assets using the currency of each country, a significant improvement from the current reliance on Korean won.
The fund sees the development of a comprehensive risk management system as an important part of the system upgrade as its assets continue to grow at a rapid pace. Advanced technologies such as artificial intelligence, machine learning and big data will be also incorporated into the new framework. (Reporting by Hee-yeon Han)