ABSTRACT
This chapter examines the management of pension funds, specifically the National Pension Fund, which has more than US$200 billion in assets, making it the fourth largest pension fund in the world. Not surprisingly, political and policy debates about investment strategy have become prominent in Korea as the population ages rapidly and income security concerns take on a higher priority. These debates take on additional relevance because of the inter-and intragenerational transfer arrangements inherent in the national pension. The focus of this chapter is to describe and analyse how the pension reserve fund has been managed and its investment strategy to date and the major implications that will arise in the foreseeable future.
