Member Article

Korean pension fund to establish UK base

The world’s fourth largest pension fund has revealed plans to open a UK base in London, as part of its overseas investment expansion.

The South Korean National Pension Service (NPS) will open in June, as announced today by Nick Clegg following his meeting in Seoul with the Chair of NPS, Jun Kwang-woo.

NPS has$320bn under management and has ambitions to almost double its current overseas portfolio of $36bn.

The Cabinet Office say it represents a huge opportunity for significant investment in UK real estate, infrastructure projects and equities.

NPS has invested over £1bn in the UK economy over the last two years, purchasing stakes in Gatwick Airport and 40 Grosvenor Place, and bought the HSBC headquarters in Canary Wharf and 88 Wood Street.

Mr Clegg said: “This is fantastic news which has the potential to bring considerable investment to the UK and create a significant jobs boost back home.

“Investment in infrastructure is a virtuous circle, growing our manufacturing and construction sectors and making Britain more attractive for further investment.

“We’re ramping up our sales pitch abroad - Britain is open for business. We’re making sure the UK doesn’t miss out because investors don’t know what’s on offer or about our long-term strategy to deliver world-beating infrastructure.

“NPS’s decision to open in London is testament to the economic opportunities in the UK.”

At the weekend, the Deputy Prime Minister approved a significant Free Trade Agreement between the EU and Korea that will bring an estimated £500m of annual benefits to the UK and create £2bn of additional export opportunities.

In addition to this agreement, Mr Clegg is also expected to announce a new Host2Host agreement that could offer millions of pounds worth of contracts to UK businesses.

NPS is on track to become the world’s third largest pension funds in the near future, having been an active buyer of Western properties, purchasing landmark buildings in Europe and the US, including a 75% in a Paris shopping centre and a $1bn deal to buy a 23% in Colonial Pipeline.

It has also set up a $4bn partnership programme with 10 large Korean companies including Samsung C&T, KT Corp, KT&G, and Posco to tap into overseas investment opportunities.

This was posted in Bdaily's Members' News section by Tom Keighley .