Defending the Forex Market with Retirement Pension Funds? President Lee: "Malicious Fake News"

President Lee's New Year's Press Conference on January 21
Lee: "Retirement pension returns at 1%?should we just leave it as is?"

On January 21, President Lee Jae-myung dismissed claims that the government is attempting to defend the foreign exchange market by converting retirement pensions into a fund, calling them "malicious fake news."

At a press conference held at the Blue House State Guest House under the theme "Great Transformation Together, Great Leap Forward for All," President Lee stated, "Not only is it impossible, but there is no need to do so, and I have absolutely no intention of doing it."

On the 21st, aides and reporters are listening to President Lee Jae-myung's remarks at the New Year's press conference held at the Blue House State Guest House. Photo by Yonhap News

President Lee's remarks are interpreted as a response to assertions made the previous day by the People Power Party. The People Power Party had criticized, "We strongly oppose the conversion of workers' retirement pensions into a fund being pushed by the Lee Jae-myung administration. There are rampant ideas about using it to defend the exchange rate, even though the exchange rate issue is already serious."

President Lee emphasized, "(The conversion of retirement pensions into a fund) cannot be done if the parties involved do not want it," adding, "Please do not misunderstand. If people do not want it, it will not be implemented. We will not make things worse, nor will we do anything unreasonable that would invite criticism."

However, President Lee asserted that "there must be some kind of measure." He pointed out, "The rate of return on retirement pensions is around 1%," and questioned, "Should we just leave it poorly managed?" Given this, President Lee believes that converting pensions into a fund could be considered as one of the alternatives.

President Lee further stated, "Retirement pensions are important assets both socially and individually, but if the rate of return is lower than inflation, people incur losses." He added, "There are ongoing discussions among academics and politicians about establishing measures for retirement pensions, and there must be a solution."