Korea’s hidden decisions are fueling public distrust

A JoongAng Ilbo editorial by Ha Hyun-ock argues that undisclosed central bank and pension decisions are fueling public distrust in South Korea. In September, the Bank of Korea removed international foreign exchange reserve rankings from its monthly reserve reports without advance notice or explanation. The central bank argued the rankings offered little meaningful information because different national accounting standards complicate comparisons, and noted the data remain available through the International Monetary Fund. The column notes Korea's reserve ranking fell from ninth at the end of last year to 13th in May before returning to 10th in June, a decline apparently reflecting intervention to stabilize the won amid a sharp rise in the won-dollar exchange rate.

Parliamentary audit documents revealed that the BOK had informally discussed removing the rankings with the Ministry of Economy and Finance, with officials arguing that frequent fluctuations created unnecessary controversy. After continued criticism, the BOK made the rankings accessible through its economic statistics system. The column questions whether the series would have been discontinued had Korea's position remained stable or improved.

The editorial describes the pension disclosure as a more serious matter. Under the National Pension Act, ordinary committee minutes become public after one year, while records involving matters that may affect investment fairness or financial market stability may be withheld for four years. Those records must still be submitted confidentially when requested by the relevant parliamentary committee, but the government and ruling party have delayed submission. At meetings in January and May, the committee postponed rebalancing domestic equity holdings and raised the domestic equity target. The January decision effectively suspended stock sales until the end of June, and the May decision raised the maximum domestic equity weighting, including strategic and tactical ranges, from 19.9 percent to 28.8 percent. Nationwide local elections took place in June.

The column notes that the president and government publicly celebrated rising stock valuations, saying they had delayed the pension fund's projected depletion, while the reasoning behind the allocation changes remains undisclosed. Domestic stocks have corrected since July, and according to opposition calculations, valuation losses amount to at least 182 trillion won ($136 billion). The author argues the National Pension Fund is citizens' retirement savings rather than discretionary government funds, and that releasing the minutes and fully explaining the rebalancing suspension is the straightforward way to restore trust.