The National Pension Service signed a contract with Woori Bank on the 14th to serve as the foreign currency custodian bank managing 931 trillion won in overseas assets. The contract, finalized at NPS headquarters in Jeonju, Jeollabuk-do, appoints Woori Bank to handle foreign exchange operations and foreign currency account management for the pension fund's overseas investments. This selection follows a competitive process that began in March with bid announcements, proposal evaluations, and technical negotiations, with Woori Bank securing the role to manage approximately 56% of the fund's 1,671 trillion won total assets held overseas.
NPS Signs Three-Year Contract with Woori Bank
The National Pension Service announced on the 14th that it signed a foreign currency custodian bank contract with Woori Bank at the corporation's headquarters in Jeonju, Jeollabuk-do. The foreign currency custodian bank performs duties including foreign exchange deposit and withdrawal operations and foreign currency account management related to the National Pension Fund's overseas investments. The contract period runs for three years starting from the 1st of next month, with the possibility of extension for up to two additional years through annual evaluations.
National Pension Overseas Assets Reach 931 Trillion Won
The National Pension Fund's accumulated reserves stood at 1,671 trillion won as of the end of April this year. Overseas assets account for approximately 56% of this total, amounting to 931 trillion won. The foreign currency custodian bank manages the foreign exchange operations associated with this substantial overseas investment portfolio.
Woori Bank Selected Through Competitive Bidding Process
The National Pension Service finalized Woori Bank as the foreign currency custodian bank after a selection process that began with a bid announcement in March, followed by proposal evaluations and technical negotiations. Woori Bank was reselected for this role, having previously served as the foreign currency custodian bank in 2021. For this selection, NPS relaxed restrictions on the number of business areas that banks within the same financial holding company could perform, changing from a maximum of two areas to encourage applications from capable domestic banks. Previously, banks could perform a maximum of two functions among main banking, foreign currency custody, office management, and trust services (domestic stocks, bonds, alternatives).
Woori Bank Plans Dedicated Foreign Exchange Office
Woori Bank plans to establish a new office dedicated to foreign exchange operations near the National Pension Service headquarters to strengthen on-site services. Chairman Kim Seong-ju stated, "Together with Woori Bank, we will enhance the stability and efficiency of foreign currency transactions to ensure that the fund's overseas investments are carried out without disruption."
FAQ
What did the National Pension Service announce on the 14th?
The National Pension Service announced that it signed a contract with Woori Bank to serve as the foreign currency custodian bank, responsible for managing 931 trillion won in overseas assets. The contract was signed at NPS headquarters in Jeonju, Jeollabuk-do, and will be effective from the 1st of next month for an initial three-year period.
How much of the National Pension Fund is invested overseas?
As of the end of April this year, the National Pension Fund's total accumulated reserves stood at 1,671 trillion won, with overseas assets accounting for approximately 56% of this amount, totaling 931 trillion won. The foreign currency custodian bank manages the foreign exchange operations for these overseas investments.
Why was Woori Bank selected as the foreign currency custodian bank?
Woori Bank was selected through a competitive process that began in March with bid announcements, followed by proposal evaluations and technical negotiations. Woori Bank previously served in this role in 2021 and was reselected based on its capabilities. The bank plans to establish a dedicated foreign exchange office near NPS headquarters to provide enhanced on-site services.
