“National Pension Service invested 41 billion on in China Evergrande Group for 5 years… 4.2 billion won in valuation losses this year”

기사입력 : 2021-10-06 09:11

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The China Evergrande Centre building in HongKong. Photo=REUTERS
The National Pension Service (NPS) has invested 41 billion won in China Evergrande Group, which is on the verge of bankruptcy, over the past five years. It is analyzed that the NPS has been losing 4.2 billion won since the beginning of the year due to the investment in China Evergrande Group.

According to the report received by Demographic Party lawmaker Kim Sung-joo, a member of the National Assembly's Health and Welfare Committee, from the NPS, the cumulative amount invested by the National Pension Service in China Evergrande Group from 2016 to the present is 41 billion won.

The investment in China Evergrande Group made by the NPS was the largest at 2.6 billion won in 2016 and 12.3 billion won in 2017, and has since declined to 8.7 billion won in 2019 and 6 billion won last year. As of last month, the balance of investment was 800 million won (0.02% stake). The National Pension Service is operating its investment in China Evergrande Group through foreign stocks operating agencies.

According to the lawmaker Kim Sung-joo’s office, as the investment of two agencies, excluding one agency that sold all of investment balance of 6 billion won at the end of last year, decreased from about 5 billion won to 800 million won as of last month, the NPS has lost total about 4.2 billion won.

In addition, as Evergrande Group’s stock trading has been suspended from this month, there is also a concern about the possibility of the NPS’ investment recovery. Even if Evergrande Group’s stock trading has been suspended to sell a stake in its affiliates, it is still unclear whether it will revive or recover the investment in the future.

By Global Economic Reporter Do-hee Lee ; translate by Gounee Yang