 |
| A client receives assistance from a National Pension Service (NPS) employee at an NPS branch office in Seoul's Jongno District, Jan. 27. Korea Times file |
By Yi Whan-woo
The National Pension Service (NPS) had more than 100,000 shares in the Silicon Valley Bank (SVB) that has been suspended from trading as it became the largest U.S. bank to collapse since the 2008-09 global financial crisis, according to industry sources, Monday.
The shares owned by the NPS were valued at over $230 million as of the end of 2022.
While it is uncertain how many shares the NPS still has, whether it can recover the investment remains doubtful in the wake of the SVB's downfall, adding to public concerns in Seoul after it suffered a record investment loss last year as the state-run pension operator.
Public concerns have been rising, especially as the pension fund is expected to be depleted faster over time in the midst of a rapidly aging population. It has been estimated that the fund, which was worth nearly 900 trillion won, might be fully drained by 2055.
According to industry sources, the NPS owned 100,795 shares in SVB as of the end of 2022, with the aggregate value of the shares amounting to $231.9 million.
The NPS acquired 27,664 of the 100,795 shares in 2022 alone, including 19,884 shares in the final three months of the year.
"Its decision to buy a massive amount of shares in SVB turned out to be a huge mistake," a source said, noting that the value of each SVB stock had more than halved to $106.64 a day before the company was suspended from trading, Friday.
The NPS said it is considering all possible measures in relation to its investment in the embattled U.S. bank. It did not give further details.
The investment capability of the NPS has been in doubt after it logged a record 8.22 percent loss on its rate of return in 2022.
Such losses come at a time when the government is desperate to carry out pension reforms because the current scheme falls short of slowing down the depletion of the fund.
The overhaul of the scheme includes revising the starting age of the pension and premium rate.
![[INTERVIEW] Ex-NIS chief urges politicians to stop misusing spy agency](https://img.koreatimes.co.kr/upload/thumbnailV2/59da8df88faa4a50ad42945501b03bca.jpg/dims/resize/178/optimize)
![[REVIEW] Musical 'Monte Cristo' returns with riveting tale of vengeance, love](https://img.koreatimes.co.kr/upload/thumbnailV2/3934be1fa6844478b619a015d610bc5b.jpg/dims/resize/178/optimize)
![[INTERVIEW] Meet the man behind giant rubber ducks that once took over Seoul](https://img.koreatimes.co.kr/upload/thumbnailV2/df32c60c8204448e98ccdb9841366bec.jpg/dims/resize/178/optimize)
