Korea Capital Market Institute

Program

Korea’s low-growth, and low-interest-rate trends have put added strain on the National Pension Fund’s investment management. Despite its increased investments in risky assets for higher returns, the NPF has difficulties in achieving desired risk premium in Korea’s stock market. As Korean companies’ low dividends have been regarded as one of the primary causes of the “Korea discount”, the NPS is expected to play a greater role as a major shareholder calling for reasonable dividends.

The National Pension Service and Korea Capital Market Institute will host a policy debate where experts will discuss the reasonable dividend standard for the NPF to secure sufficient investment returns as long-term investors. In this event, in-depth discussions will take place about how the NPF can set its proxy voting guidelines on dividends in order to improve long-term investment returns of the NPF and facilitate qualitative growth in Korea’s stock market.