S. Korea's pension fund to trim overseas exposure

SEOUL, Oct. 23 (Yonhap) -- The National Pension Service, South Korea's largest institutional investor, will trim its overseas investments while expanding local exposure this year amid growing global financial woes, the government said Thursday.

The pension service will invest 72.4 percent of its assets in local bonds this
year, up from an earlier target of 66.4 percent, while the ratio of its
investment in local equities will remain unchanged at 17 percent, the Ministry of
Health, Welfare and Family Affairs said in a statement.
Investments in foreign stocks, meanwhile, will decline from 6.8 percent to 3.6
percent of its total assets and investments in overseas bonds will fall to 4.15
percent to 6.9 percent, said the ministry, which manages around 228 trillion won
(US$160.8 billion).
The adjustment in investment portfolios comes amid U.S.-sparked financial woes
and growing concerns that financial instability could send the global economy
into a recession.
South Korea's financial markets have been undergoing a roller coaster session
since last month when major American investment banks collapsed. The local
currency has lost 31 percent against the U.S. dollar so far this year and the
nation's benchmark KOSPI plunged to a three-year low on Wednesday.
kokobj@yna.co.kr
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