Key Takeaways
- • National Pension Service chairman Kim Sung-joo apologized during a National Assembly Health and Welfare Committee audit on the 27th after saying lawmakers were not asking questions with a firm grasp of the details of the fund's stock holdings.
- • Kim argued the NPS invests in more than 80 countries, with overseas investments accounting for more than 55% of the fund, and said domestic equities are currently delivering the best returns.
- • Committee chairman Lee Man-hee, a People Power Party lawmaker, warned Kim to withdraw the remarks, and People Power Party members called them "deeply insulting" and cited contempt provisions under the Act on Testimony and Appraisal Before the National Assembly.
- • The audit was temporarily suspended amid shouting before Kim apologized, saying: "I apologize for using wording that could be misunderstood."
- • Separately, the parties disputed disclosure of minutes from the National Pension Fund Management Committee on its decision to defer rebalancing of domestic equity holdings, with the ruling party citing a four-year release restriction under the National Pension Act.
Summary
Kim Sung-joo, chairman of South Korea's National Pension Service, pushed back against claims that the fund is overweight in domestic equities during a parliamentary audit on the 27th, according to Seoul Economic Daily. Appearing before the National Assembly's Health and Welfare Committee, Kim responded to a question on fund management from Rep. So Byung-hoon of the Democratic Party of Korea. He said the NPS invests in more than 80 countries and that overseas investments account for more than 55% of the fund. He added that the fund maintains a long-term investment stance and that domestic equities are currently delivering the best returns, arguing the fund could have posted losses without its Korean stock allocation.
Kim's remarks that lawmakers did not appear to be asking questions with a firm grasp of the details drew immediate objections. Committee chairman Lee Man-hee, a three-term People Power Party lawmaker, cut off So's questioning and asked Kim to withdraw the comments. Kim did not retract them initially, stating that ordinary citizens would be misled if lawmakers themselves characterized the fund as investing only in domestic stocks. After So finished, People Power Party lawmakers protested. Rep. Han Ji-a called the remarks "deeply insulting," stated that opposition lawmakers are aware of the share of domestic equities, and cited Article 13 of the Act on Testimony and Appraisal Before the National Assembly, which covers contempt of the National Assembly, demanding that the chairman seek punishment.
Shouting broke out across the hearing room and the audit was temporarily suspended. When proceedings resumed, Lee demanded an apology, and Kim said: "I apologize for using wording that could be misunderstood."
The audit also featured a dispute over the National Pension Fund Management Committee's minutes on its decision to defer rebalancing of domestic equity holdings. The People Power Party demanded disclosure, arguing that the circumstances of the deferral and its impact on the fund must be verified. The ruling party responded that under the National Pension Act, the committee's minutes can be released only after four years.
Kim's remarks that lawmakers did not appear to be asking questions with a firm grasp of the details drew immediate objections. Committee chairman Lee Man-hee, a three-term People Power Party lawmaker, cut off So's questioning and asked Kim to withdraw the comments. Kim did not retract them initially, stating that ordinary citizens would be misled if lawmakers themselves characterized the fund as investing only in domestic stocks. After So finished, People Power Party lawmakers protested. Rep. Han Ji-a called the remarks "deeply insulting," stated that opposition lawmakers are aware of the share of domestic equities, and cited Article 13 of the Act on Testimony and Appraisal Before the National Assembly, which covers contempt of the National Assembly, demanding that the chairman seek punishment.
Shouting broke out across the hearing room and the audit was temporarily suspended. When proceedings resumed, Lee demanded an apology, and Kim said: "I apologize for using wording that could be misunderstood."
The audit also featured a dispute over the National Pension Fund Management Committee's minutes on its decision to defer rebalancing of domestic equity holdings. The People Power Party demanded disclosure, arguing that the circumstances of the deferral and its impact on the fund must be verified. The ruling party responded that under the National Pension Act, the committee's minutes can be released only after four years.
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