South Korea NPS posts 18.8% return in 2025

South Korea NPS posts 18.8% return in 2025

South Korea’s National Pension Service Reports Strong Preliminary Returns in 2025

As of September 2025, South Korea’s National Pension Service (NPS) has posted a preliminary year-to-date (YTD) investment return of 11.31% for the period January 2025 to September 2025, according to its latest performance report. While this figure does not yet reflect the full-year 2025 return, it indicates a robust start to the year for the country’s largest pension fund. Over the past three years (2022–2024), the NPS achieved an annualized return of 6.98%, aligning with its long-term strategic objectives.

The NPS’s strong performance in 2025 aligns with broader trends in South Korean pension funds. For instance, the Government Employees Pension Service (GEPS) reported a total return of 17.4% for 2025, its highest in five years, driven by gains in domestic equities. Similarly, the Korea Teachers’ Pension Fund announced a record 19.8% return for 2025, fueled by a 90.9% surge in domestic equities and 18.3% gains in overseas equities. These results highlight the favorable market conditions in 2025, particularly for equity investments in South Korea.

The NPS’s preliminary YTD return of 11.31% has generated KRW 138.7 trillion in investment income for the same period, contributing to its cumulative investment gains of KRW 737.7 trillion since inception in 1988. However, final 2025 figures for the NPS will be confirmed once year-end valuations are completed.

While the NPS’s 2025 return remains preliminary, its performance underscores the resilience of South Korea’s pension fund sector amid global market volatility. Investors should note that returns vary across funds due to differing asset allocations and investment strategies.

National Pension Service Investment Management Report: National Pension Service Investment Management Report
KEDGlobal, Government Employees Pension Service 2025 Performance: KEDGlobal, Government Employees Pension Service 2025 Performance
KEDGlobal, Korea Teachers’ Pension 2025 Results: KEDGlobal, Korea Teachers’ Pension 2025 Results

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