This article appeared on the Signal capital markets service on August 25, 2026, at 2:27 p.m.
The National Pension Service (NPS) is expected to resume commitments to domestic private equity fund (PEF) managers, issuing a public notice as early as October, according to sources. A survey of prospective funds found fundraising demand concentrated among mid-sized PEFs, sources said. The commitment program is expected to begin after the selection of a new chief investment officer (CIO).
The NPS fund management division recently completed the demand survey of PEFs, according to investment banking (IB) sources on the 25th. The survey asked whether firms planned to raise funds in the second half of this year and, if so, on what scale, sources said. Because the survey centered on mid-sized PEFs, the NPS is expected to direct its commitments toward such firms.
The market expects a commitment notice as early as October, after the demand survey and the selection of the NPS CIO are completed. The NPS CIO shortlist has narrowed to Kim Ho-jin, former CIO of the National Federation of Fisheries Cooperatives; Park Cheon-seok, former CIO of the Korean Federation of Community Credit Cooperatives; Lee Kyu-hong, former CIO of the Teachers' Pension; and Lee Do-yoon, former CIO of the Korea Federation of SMEs. The CIO selection is expected to conclude as early as the end of this month or next month.
The NPS's PEF commitments have drawn attention because the program was suspended last year. The NPS had run PEF commitment programs for 10 consecutive years starting in 2015 but did not do so last year. The prevailing view is that the pause reflected concern over negative sentiment toward PEF commitments, after controversies related to investments in Homeplus and Korea Zinc spread through political circles and society at large.
With the fund's assets growing and private alternative investments seen as capable of generating stable long-term returns, expectations are also building that the NPS will not suspend commitments for a second straight year. NPS Chairman Kim Sung-joo is reported to favor commitments as well, given that private investment — which accounts for about 44% of the alternative-investment asset class — delivers stable and strong returns.
The responsible-investment issue that had originally been a sticking point has also been largely resolved. The range of asset classes to which the NPS's responsible-investment principles can be applied will be expanded to include alternative assets. The government plans to apply these principles as early as next year, reflecting them in processes such as the selection of external managers. The move follows the National Assembly's passage of a partial amendment to the National Pension Act at its plenary session on the 20th, establishing an explicit legal basis for applying responsible-investment principles to alternative investments as well.
"The NPS is engaging in active communication with PEFs," an IB industry official said. "If the NPS makes commitments, it will have an even more positive effect on the second-half fundraising market."
