The National Pension Service (NPS) said Friday it has selected State Street Bank as the overseas custodian responsible for the safekeeping, settlement and management of the NPS fund's overseas investment assets starting next year.
After issuing a public notice for the selection of an overseas custodian in April, the NPS conducted a business briefing, proposal review and on-site due diligence, before naming State Street Bank as the first-ranked preferred bidder and Bank of New York Mellon as the second-ranked preferred bidder.
The custodian selection was pursued with a focus on securing a global-level back-office partner that can safely support the fund's expansion of overseas direct investment and its diversification stance.
An overseas custodian is an institution that performs safekeeping, settlement, asset management, administrative services and middle services for the NPS fund's overseas investment assets. It plays a key role in supporting the safe management of fund assets and the smooth execution of investments in global financial markets.
To spread the risk of custodial operations and strengthen expertise, the NPS plans to conduct negotiations according to the ranking of preferred bidders, and then separately conclude custody contracts (custody, administration and middle services) for each asset type by distinguishing between overseas equities and overseas bonds.
For overseas alternative investment assets, the institution handling overseas equities will also perform the custodial work. The NPS plans to finalize contracts by early next year after completing detailed technical negotiations with the preferred bidders on the execution of the work. The contract term is a basic three years, which can be extended by two years depending on evaluation results.
As of the end of April 2026, the NPS fund reserves stood at 1,670 trillion won, of which 55.7 percent is invested overseas. By asset type, this comprises 604.5 trillion won in overseas equities, 103.1 trillion won in overseas bonds and 221 trillion won in overseas alternatives.
"Amid the continued expansion of the fund's overseas investment share, a stable custodial infrastructure is a key foundation of fund management," NPS Chairman Kim Sung-joo said. "We will cooperate with an institution equipped with global-level custodial capabilities to ensure that asset safekeeping and settlement are carried out smoothly, without a single error."
