2005 Annual Report on Pension Fund Management

Table of Contents
1. Formation of Fund and Investment Environment 1
1.1. Formation and Management of the Fund 1
1.2. Investment Environment 6

2. Investment Performance 11
2.1. Overall Performance 11
2.2. Investment Performance in the Financial Sector 15
2.3. Investment Performance In the Public Sector 31
2.4. Investment Performance in the Welfare Sector 33

3. Investment Policies of the National Pension Fund in 2004 36
3.1. Purpose and Direction of Fund Management 36
3.2. Principles of Investment 36
3.3. Guidelines of Fund Management in 2004 37
3.4. Major Issues and Changes Related to Fund Management 39

4. Management System of the Fund 42
4.1. Management System and Work-flow 42
4.2. Fund Management Committee and Evaluation Committee 45
4.3. Ministry of Health and Welfare 47
4.4. National Pension Corporation 48
4.5. Fund Management Center 52
4.6. National Fund Research Institute 56
5. Finance 58
5.1. Fund Accounting 58
5.2. Financial Statements 62
5.3. Auditors' Report 66

6. Major Sources 67
[Table] Reserved Fund of the National Pension 67
[Table] Yearly Revenue & Expenditure of the Fund 68
[Table] Yearly Fund Investment 69
[Table] Yearly Proceeds from Fund Management 71
[Table] Accumulatd Rate of Return Fund 72
[Table] Results of the Management Meetings Held in 2004 73
[Table] Yearly number of Workplace and Number of Insured Persons 75
[Table] Expansion Process to Full National Pension to All Citizens 75
[Table] Payments by Type Each Year 76
[Table] Mid-term Financial Projection of the National Pension Fund 77