S. Korean State Fund to Cut Stock Investment in 2009

South Korea's state fund plans to trim its stock investment ratio by nearly 10 percentage points in 2009 amid worldwide bearish equity markets stemming from global financial turmoil, the South Korean government said Monday.

The National Pension Service (NPS), the nation's largest institutional investor, will trim its stock investment ratio from the current 29.7 percent to 20.65 percent of the total assets for next year, according to the Ministry of Health, Welfare and Family Affairs

It was inevitable for us to readjust our 2009 fund management plan mainly due to growing concerns over global market instability, a ministry official said.

Instead of investing in the equity market, the NPS will increase investment in safer bond and other alternatives to 73.4 percent, up from the current 66.4 percent, the ministry said.

The decision came as the NPS, which holds more than 230 trillion won (180.1 billion U.S. dollars), attempts to reduce risks from exposure to volatile stock markets at home and abroad.

Source: CRIEnglish