Pension fund sees crisis as opportunity

Jun Kwang-Woo NPS chairman

Now is the time to look beyond the crisis and try to find a new opportunity the head of the nation’s pension fund has said, by effectively managing the economic turmoil.

At a speech to mark the opening of its office in London on June 21, National Pension Service (NPS) Chairman Jun Kwang- Woo called for global financial leaders to focus on addressing challenges. He said, “It (the ongoing crisis) is serious but not hopeless.” “During an opening ceremony attended by many global leaders, everyone discussed how serious the ongoing crisis was and how long it would last. They expressed concerns but few people raised a question on how to address it,” Jun told The Korea Times at a recent meeting.

Among participants at the ceremony were former British Prime Minister John Major, HSBC Chairman Douglas Flint, Carlyle Group Chairman David Rubenstein, Societe Generale Chairman Didier Valet and Barclays Chairman Marcus Agius.

“What is really important is not the challenge itself but how to address it,” he added. He believes that a mishandled opportunity can turn into a crisis, while a well-managed crisis can offer a better chance.

Jun’s belief is behind the world’s fourth largest fund’s decision to gain a presence in London when the eurozone crisis has shown no sign of abating.

Jun seeks to speed up the fund’s globalization while the situation seems to be shrinking into oblivion.

He said that this is the right time to diversify its assets valued at $320 billion.

“This new office symbolizes the next strategic step for our organization, one of shaping the NPS for the future by further diversifying its considerable assets, which are expected to surpass 1 trillion dollars in less than a decade,” Jun said during the speech.

“Globalization has increased both the threats and the opportunities faced by institutions like the NPS, as we are now confronted with challenges from all corners of the world, while at the same time, we are also better able than ever before to diversify and manage our risk.” Through the London office, the former head of the Financial Services Commission (FSC) aims to establish and cultivate a worldwide network of investment partnerships.

“Our establishment of overseas offices, like this one, allows us to build these bridges in pursuit of investment globalization,” he said.

The state fund chief’s positive view and courageous approach has gained attention as it came amid many financial leaders’ doom talking about the Korean economy. It sends two important messages.

First, the NPS’ forays into London at a time of financial upheaval and economic difficulties are expected to give confidence to global investors about the Korean economy. Second, it can help market players and policymakers see more positive sides of what’s happening in the global scene.

FSC Chairman Kim Seok-dong recently said that the eurozone crisis has had the greatest economic impact since the Great Depression in 1929. With a gloomier outlook, KDB Financial Group chairman Kang Man-soo, former finance minister said that the ongoing turmoil could be worse than the Great Depression and would last longer. <The Korea Times/Kim Jae-kyoung>

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