South Korean National Pension Service scrutiny

Following a sharp decline in the KOSPI, former lawmaker Yoo Seong-min called for an investigation into the National Pension Service (NPS). Yoo alleged that the fund failed to adhere to rebalancing principles, resulting in significant losses to citizens’ retirement savings while foreign investors engaged in ‘hit-and-run’ profit-taking. He specifically noted a drop in fund assets and questioned whether political pressure influenced decisions to raise domestic stock limits.

During a subsequent National Assembly audit, lawmakers debated the NPS decision to delay asset rebalancing of domestic stocks earlier in the year. Representative Lee Dal-hee criticized the fund for potentially acting as a political tool to support the market rather than maximizing retiree returns. NPS Chairman Kim Seong-ju defended the actions, stating they were based on an optimistic market outlook and were reached unanimously by the Fund Management Committee without government orders. The audit also involved disputes over whether to disclose committee meeting minutes, with the opposition seeking transparency and the ruling party citing market stability concerns.

Lawmaker Ahn Cheol-soo has expanded these criticisms, noting that the stock valuation of 287 companies held by the NPS decreased by approximately 182 trillion won over a three and a half month period. Ahn highlighted that Samsung Electronics and SK Hynix accounted for roughly 131 trillion won of that loss. He further criticized the government and ruling party for delaying the submission of committee meeting minutes to the National Assembly, demanding greater independence to protect future generations' assets.