|
KMID : 1001320150420010211
|
|
Social Welfare Policy
2015 Volume.42 No. 1 p.211 ~ p.237
|
|
|
Return of Social Investment of the National Pension Fund Evaluated in terms of Trust Fund
|
|
Kim Min-Jeong
Choi Woong-Bee
Kim Woo-Chang
|
|
|
Abstract
|
|
|
|
According to the 2013 actuarial projection result, the accumulated fund of the National Pension is expected to reach the highest amount as much as 50% of GDP in 2043. However, this huge fund will become exhausted in 2060 because of the aging population and the low fertility rate. Many researchers have studied the asset management of the National Pension Fund to enhance the sustainability of the fund, but the results of these researches depend on the definition of the characteristic of the National Pension Fund. The two characteristics of the National Pension Fund, a trust fund and a social investment capital, is considered to conflict with each other. In order to determine which characteristic is more appropriate to the National Pension Fund, it is needed to quantify the return of the investment for social purpose. If this return is well defined and quantified, we can compare two investments of financial assets and social welfare and obtain an optimized portfolio for the National Pension Fund. For these reasons, in this research, we develop the optimization model calculating the return of the investment for raising fertility rate which is one of the investments for social purpose. In addition, by using the asset-liability management model, we examine whether the investment for raising fertility rate improves the sustainability of the National Pension Fund. As a result, under specific conditions, the return of the investment for raising fertility rate is higher than that of the investment in financial assets which is predicted in the 2013 actuarial projection. Also, it is shown that the investment for raising fertility rate enhances the sustainability of National Pension Fund and postpones the year of exhaustion. Therefore, we show that the investment for social purpose is also a good investment asset which the National Pension Fund should consider to invest.
|
|
|
KEYWORD
|
|
|
National Pension Fund, Asset-Liability Management, Trust Fund, Social Investment Capita, Return of Social Investment
|
|
|
FullTexts / Linksout information
|
|
|
|
|
|
Listed journal information
|
|
|
|