South Korea's National Pension Service (NPS) experienced a record decline in returns in 2022, according to data released on Tuesday. The NPS reported negative returns of 8.28%, the lowest since its establishment in 1988. Global financial market instability, triggered by monetary tightening measures and US rate hikes, contributed to the dismal performance. The Ministry of Economy and Finance attributed the decline to the slump in securities and bond markets. Despite the setback, the finance ministry rated the NPS as “satisfactory”, the third highest in the six-tier system, as it outperformed major global rivals. Notably, state-run pension funds from the Netherlands, Norway, Japan, and Canada also reported negative returns. In response, the finance ministry recommended restructuring or improving investment projects for 18 out of 24 state-run funds.