Jeon Jin-sook: "National Pension Service Ignores Public Interest Even in Stock Investments"

Lethal Weapons, Tobacco, Corruption 'Sin Stocks' Receive 6 Trillion Investment
"Operated with Public Taxes... Need to Expand Responsible Investment"

Jeon Jin-sook Assembly Member

The National Pension Service (NPS) has been revealed to have invested over 6 trillion won in so-called "sin stocks," including companies related to weapons of mass destruction, coal, tobacco, and corruption. These companies are excluded from investments by major overseas pension funds such as those in Norway, Sweden, and the Netherlands, raising calls for the NPS to strengthen its socially responsible investment policies.

According to data submitted to Jeon Jin-sook, a member of the Democratic Party of Korea representing Gwangju Buk-gu Eul, from the NPS on the 16th, as of February, the NPS had invested 3.0557 trillion won in environmental pollution companies, 1.1513 trillion won in coal companies, 812.6 billion won in tobacco companies, and 593.7 billion won in weapons of mass destruction companies. Notably, investment in the weapons sector (anti-personnel mines, cluster munitions) more than doubled compared to 298.1 billion won in 2021.

Looking at specific companies, the company receiving the largest investment was POSCO Holdings, an environmental pollution company, with a total investment of 2.3007 trillion won. This was followed by Korea Electric Power Corporation (KEPCO), a coal power company, with 1.1513 trillion won; KT&G, a tobacco manufacturer, with 811.8 billion won; and LIG Nex1, a cluster munition manufacturer, with 422.2 billion won.

Regarding investment standards of major overseas pension funds, Norway’s Central Bank Investment Management (NBIM) excludes investments in tobacco, coal, and weapons manufacturing companies. The Dutch public pension fund (ABP) also completely blocks investments in weapons manufacturers producing cluster munitions and anti-personnel mines, as well as tobacco producers, and has ceased investments in fossil fuel producers, reinvesting in projects for sustainable energy transition.

In contrast, the NPS does not designate any companies for investment exclusion. Although the Fund Management Committee approved a "Plan to Activate Responsible Investment" in November 2019 and declared a strategy to restrict investments in coal mining and power generation industries in May 2021 to address climate change, it remains "in the process of preparing implementation measures" even after three years.

The NPS has also continued investing in SPC Samlip, a company where worker fatalities have occurred. Since 2020, it has maintained investments worth around 20 billion won in SPC Samlip, with an evaluation amount reaching 26 billion won as of 2023. During the same period, SPC experienced a total of 572 industrial accidents, leading to criticism that the "Plan to Activate Responsible Investment of the National Pension Fund" is ineffective.

Assemblywoman Jeon stated, "It is a serious problem that there are no investment exclusion criteria despite operating with the people's tax money. While profitability is important, securing public interest is also a very important value," and emphasized, "The National Pension Service should actively consider restricting investments in coal, weapons of mass destruction, and tobacco, and significantly expand socially responsible investments considering industrial accidents and other factors."