National Pension Service Approves 1.3 Billion Won Budget for Appointment of Full-Time Expert Committee Member

[Asia Economy Reporter Park Jihwan] The National Pension Service held a meeting of the Fund Management Committee, the highest decision-making body for fund management, and approved a budget of 1.3 billion KRW for the introduction of full-time expert members.

Cho Heungsik, Vice Chairman of the National Pension Fund Management Committee (President of the Korea Institute for Health and Social Affairs), said at the second National Pension Fund Committee meeting of the year held on the morning of the 17th at the Plaza Hotel in Jung-gu, Seoul, "We have finalized the necessary budget including salaries for full-time expert members," adding, "After the agenda is approved, full-time expert members will be officially appointed, and subsequent procedures will proceed swiftly." He added, "We expect that a professional committee will be formed soon, and that specialized and independent discussions on fund management will be actively conducted going forward."

At the meeting, the agenda to amend the '2020 National Pension Fund Management Plan,' which mainly involves establishing detailed projects to strengthen the expertise of the National Pension Fund management, was submitted and approved.

The budget of approximately 1.3 billion KRW includes personnel expenses such as the scale and salaries of full-time expert members and support staff, as well as operating costs for the expert committee and construction costs for office space installation. Specifically, 632 million KRW was allocated for salaries for three full-time expert members and six support staff. Additionally, 355 million KRW was allocated for operating expenses such as expert committee operations and office space rent, and 170 million KRW was allocated for office space construction and equipment purchases.

The Fund Committee plans to promptly proceed with follow-up procedures such as appointing full-time expert members, hiring support staff, and installing office space according to the budget plan. Through this, they aim to enable the three expert committees on investment policy, fiduciary responsibility, and risk management & performance compensation to begin activities within this month.

This budget approval is a follow-up measure prepared after the amendment to the Enforcement Decree of the National Pension Act was promulgated and enforced on the 29th of last month. According to the amendment, the National Pension Expert Committee will be divided and operated into the Investment Policy, Fiduciary Responsibility, and Risk Management & Performance Compensation expert committees, each composed of nine members. Three full-time expert members will be appointed, one from each subscriber group (workers, employers, regional subscribers) recommended from qualified candidates, and will jointly participate in the three expert committees.