Woori Bank Selected to Manage $886 Billion National Pension Fund's Foreign Assets

Woori Bank has been selected as the preferred negotiator to manage the National Pension Service's (NPS) $886 billion in foreign assets. This decision, announced on May 7, reinforces Woori Bank's status as a leader in foreign exchange management after successfully holding the custody since August 2021.

The NPS plans to finalize the contract with Woori Bank in June. If negotiations fail, they will engage with the next preferred candidate. The initial contract period is three years, with the possibility of extending it for up to two additional years based on annual evaluations.

Woori Bank and KB Kookmin Bank competed for the bid, with selection criteria including financial stability, operational capability, foreign currency management experience, service quality, and risk management. Woori Bank's experience since 2021 gave it a competitive edge in the selection process.

This marks the first selection of a foreign currency custody bank for the NPS in five years. As the designated bank, Woori Bank will oversee various functions, including domestic and international foreign exchange transactions, account management for foreign currency, short-term fund limits, remittances, and foreign exchange trading. As of late February, the NPS's total fund reserves stood at 1,610 trillion won, with 55% allocated to foreign assets. Managing the NPS's foreign exchange transactions will enhance Woori Bank's industry standing and generate fee income.