Concealing Industrial Accidents or Two or More Annual Deaths to Result in Penalties... National Pension Service Revamps ESG Evaluation System

Penalty Rate per Incident Raised from 10% to 33%

The National Pension Service will revamp its ESG (Environmental, Social, and Governance) evaluation system to ensure that serious industrial accidents and similar incidents are sufficiently considered in investment decisions. The revised system will also impose penalties in cases where two or more deaths occur in a year or when industrial accidents are concealed.

On the 24th, the National Pension Fund Management Committee held its sixth meeting of 2025 at the Seoul Government Complex. During the meeting, the committee reviewed and approved the "2025 National Pension Fund Management Plan Amendment (Draft)" and discussed measures to strengthen responsible stewardship activities for domestic equities.

First, to ensure smooth pension payments this year, the related budget was increased by approximately 1.25 trillion won, from the original 48.41 trillion won to 49.97 trillion won. This increase is attributed to a rise in new beneficiaries who have sufficiently secured their subscription periods through additional premium payments and voluntary continued enrollment.

Additionally, the committee received a report and held discussions on measures to strengthen responsible investment and shareholder rights activities related to industrial safety for domestic equities. This follows the comprehensive labor safety measures jointly announced by relevant ministries on September 15.

Accordingly, the ESG evaluation system will be improved so that facts related to serious industrial accidents and similar incidents are fully considered in investment decisions. Specifically, the revised evaluation criteria will include penalty points for cases where two or more deaths occur annually, for major industrial accidents, and for the concealment or failure to report industrial accidents. Previously, penalties were imposed only on workplaces with frequent industrial accidents. The penalty rate for each occurrence of a major incident, such as a fatal accident, has also been raised from 10% to up to 33% per incident.

Minister of Health and Welfare Jung Eunkyung stated, "Through responsible stewardship activities regarding industrial safety and serious accidents, we will continue to monitor and improve the implementation process to contribute to enhancing both corporate value and fund returns."

Jung Eunkyung, Minister of Health and Welfare, is presiding over the National Pension Fund Management Committee held at the Seoul Government Complex on the 24th.