The National Pension Service (NPS) will continue to expand its real estate portfolio in North America, Europe and India, targeting residential, logistics and digital-related assets, Jun Ahn, head of the real estate division at NPS, said on Thursday.
Demographic change, urbanization and technological innovation are the key drivers of the South Korean pension scheme’s real estate investment strategy, Jun said in a keynote speech during the ASK 2025 Global Investment Conference.
“Geographically, North America and Europe remain the core markets for NPS. These regions offer the depth and scale we seek,” he added.
Asia’s emerging markets are expected to generate early-stage value and long-term returns.
India, in particular, presents a compelling opportunity, driven by accelerating urbanization and demographic change.
INVESTMENTS IN REAL ESTATE DEBTS
Ahn, a seasoned expert in real estate capital markets, joined the NPS in 2023 after stints at Samsung Life Insurance, Royal Bank of Scotland, Wells Fargo Bank and Royal Bank of Canada.
Since taking the helm of the South Korean pension fund’s real estate division, he has led the NPS to expand investments in real estate-backed debts, as well as platform investments.
A platform investment refers to an initial or foundation acquisition by a asset management firm before making bolt-on purchases.
“We have made substantial progress in real estate debt investments, which play a crucial role in improving the stability of our portfolio,” Ahn said.
Under his leadership, the NPS has also seen a notable rise in property allocations.
“In 2023, our annual new commitments to real estate were in the single-digit trillion-won range,” he said. “By 2024 and 2025, that figure had risen to double digits, representing around 5% of the fund’s assets under management.”
He noted that this growth reflects “a strategic belief in real estate as a resilient and value-accretive asset class, alongside its rsing assets under management.
As of the end of July, NPS’s real estate holdings stood at 61.38 trillion won ($43 billion), accounting for 4.71% of its AUM.
“Real estate provides both stability and inflation protection, making it an ideal long-term investment during times of economic uncertainty,” Ahn said. “Our goal is to ensure that real estate serves not only as a stable income generator, but also as a key driver of portfolio diversification and long-term value creation.”
Domestically, the NPS will broaden its pool of real estate general partners, including small and mid-sized firms, as part of efforts to nurture Korea’s real estate investment market and strengthen local asset managers, Ahn added.
By Yeonhee Kim
yhkim@hankyung.com
Jennifer Nicholson-Breen edited this article.
