(Recasts lede, adds attrition details, portfolio return rates)
By Joyce Lee
SEOUL Feb 28 South Korea's National Pension
Service (NPS), the world's third-largest pension fund, said on
Tuesday it plans to boost the pay of its fund managers through
an extra 4.3 billion won ($3.8 million) budget as it fights to
staunch a wave of resignations.
The NPS said in a statement that it plans to increase the
fund managers' pay to the upper quartile range of the private
sector, after its move to a remote city caused a spike in staff
Previously, NPS fund managers earned about 70 percent of the
pay of their private sector counterparts.
The NPS' Investment Management organization, which has 558
trillion won ($493.24 billion) of assets under managements, has
moved its headquarters this month to Jeonju, a city 200 km (125
mile) or three-hour trip away from Seoul by high-speed train and
The NPS said in the statement 30 people quit its Investment
Management organization in 2016 - three times the number in 2015
- and 11 more have given notice so far this year.
NPS said in a statement issued by its overseeing health
ministry its 2016 provisional return rate was 4.75 percent,
compared to a 4.57 percent return rate in 2015.
Its 2016 overseas stocks investments' return rate of 10.1
percent improved compared to a 5.7 percent return in 2015, while
2016 South Korean stocks' 5.6 percent return rate also bettered
the 1.7 percent return rate in 2015.
NPS has some 150.8 trillion won, or 27.1 percent of total
assets, invested in overseas assets as of the end of 2016. It
previously said it plans to increase overseas investment to 35
percent or more of assets by end of 2021.
The fund is projected to build towards a peak of $2.2
trillion in assets by 2043.
($1 = 1,131.1000 won)
(Reporting by Joyce Lee; Editing by Shri Navaratnam)