[2025 Audit] "Dictating How People's Retirement Savings Are Managed"... People Power Party Criticizes Lee Administration's Intervention in National Pension Fund Management

National Pension Audit on the 24th
Criticism Over President Lee's Remarks on Expanding Domestic Stock Investments
and "Pressure to Invest in the National Growth Fund"
Chairman: "No Request from the Government"

During the National Assembly audit, lawmakers from the People Power Party raised concerns that the government is excessively intervening in the management of the National Pension Fund, citing recent remarks by President Lee Jaemyung about expanding domestic stock investments by the National Pension Service. Kim Taehyun, Chairman of the National Pension Service, stated that he would reconsider asset allocation, taking into account factors such as parametric reform and economic outlook.

Yonhap News Agency

At the Welfare Committee's audit held at the National Pension Service in Jeonju, North Jeolla Province, on the 24th, People Power Party lawmakers focused their questions on key issues such as the National Pension Fund's investment in the National Growth Fund and the proportion of domestic stock investments. Assemblyman Ahn Sanghoon said, "The Lee Jaemyung administration shows little interest in the financial sustainability of the National Pension Service and is trying to dictate how the people's retirement savings are managed, which is causing public concern. There was also controversy over 'pension fund socialism' during the Moon Jaein administration, so the government must be prevented from interfering in pension fund management." This was in reference to President Lee's comments at a press conference marking his 100th day in office on September 11, where he stated, "One reason the Korean stock market is undervalued may be a lack of demand. For example, domestic pension funds are reducing their domestic stock investments and buying only foreign stocks in large quantities."

Assemblyman Ahn further stated, "Ten years from now, the pension fund will face a deficit in premium income and will have to dip into the fund to pay benefits, which will inevitably require selling domestic stocks. Even now, if the National Pension Fund reduces its holdings by just 1-2%, the domestic stock market fluctuates significantly. At that time, a market crash will be inevitable."

In response, Chairman Kim said, "With the parametric reform, the insurance premium rate has risen from 9% to 13%, which has changed the timing of fund depletion and its peak. This provides an opportunity to reconsider how to adjust the proportion of domestic stock investments. We will comprehensively consider the effects of pension reform, improvements in corporate governance, and economic growth prospects, and review these factors in the process of establishing a medium-term financial plan."

Concerns were also raised about the plan to invest 150 trillion won from the National Pension Fund into the National Growth Fund. Assemblywoman Choi Boyoon of the People Power Party said, "I believe there is pressure for pension funds to participate in the National Growth Fund. It will be difficult for the public to accept the use of their retirement savings for a 150 trillion won government project, and if it is used for political purposes, it could lead to trust issues."

Regarding the National Growth Fund, Chairman Kim answered Assemblywoman Choi's question about whether there had been any requests or proposals for investment from government ministries or the Financial Services Commission by saying, "There has been no discussion of this at the level of the Fund Management Committee."