Global assets drive Korean teachers' fund to 11.1% return in 2024

The Korean Teachers’ Credit Union (KTCU) achieved an 11.1% return on investments in 2024, with overseas portfolios in stocks, infrastructure and private equity and credit strongly outperforming domestic assets.

This compares with its 2023 return of 8.3%. However, its 2025 target is lowered to 5.2% amid ongoing political and economic uncertainties, said the retirement savings fund on Tuesday.

IT stocks in North America returned 30.9%, topping the 19.9% gain from its overseas buyout and secondary private equity deals.

“With the growing share of overseas investments, we are working to expand our global network, including setting up overseas offices,” Jung Gab-yoon, KTCU's chairman,  said in a statement released by the retirement fund.

“We will continue to prioritize stability in asset management to ensure long-term, sustainable growth,” he added.

Asset type	% of portfolio	Assets (in billion won)	Return (%)
Private equity/credit	27.1	16,027.3	14.2
Domestic			6.4
Overseas			19.9
Real estate	25.8	15,259.2	5.4
Infrastructure	16.3	9,686.9	16.1
Domestic			9.1
Overseas			18.7
Stocks	17.2	10,170.0	30.9 (overseas)
Bonds	13.6	8,078.6	5.2
(Figures are as of 2024)

Assets under management (AUM) grew by 16.3% on-year to 74.59 trillion won ($51 billion) as of the end of 2024. Investment assets comprised 79.5% of the total, with loans to members accounting for 15.0%.

Overseas investments accounted for 60.7% of the AUM, with domestic portfolios at 39.3%.

INFRASTRUCTURE, REAL ESTATE

Rising global energy demand and digitalization trends were credited for an 18.7% return from global infrastructure assets. The KTCU launched an infrastructure-dedicated investment division last year.

Its real estate investments yielded a 5.4% return, driven by direct lending for overseas multifamily assets and investments in senior loans and real estate investment trusts at home.

Asset class	Return in 2024 (%)
Stocks/bonds	10.8
Private equity/credit	14.2
Alternatives	9.3

NET PROFIT

In 2024, the KTCU reported a net profit of 7.2 trillion won ($5.4 billion), marking its 11th consecutive year in the black. 

Its reserve ratio stood at 113.9% at the end of last year, remaining above 100% for the seventh straight year since 2018.

Write to Gyeong-Jin Min at min@hankyung.com

Yeonhee Kim edited this article.