'Change in valuation of some listed stocks, not total fund loss'
'Jan.–July return of 14.84% ranks among world's best'
PPP's calls for special prosecutor, presidential impeachment slammed as political tool
Seoul housing permits up 74%, ground-breakings up 45%
The Democratic Party of Korea on Thursday called on the People Power Party to "stop groundless political agitation" after the PPP claimed the national pension fund had suffered a 182 trillion won ($137 billion) loss and raised the prospect of a special prosecutor investigation and presidential impeachment.
Democratic Party Policy Committee Chairman Kwon Chil-seung, speaking at a national audit strategy meeting at the National Assembly, criticized the PPP for "stoking public anxiety with baseless claims about the national pension" and said the party had "resorted to inflammatory language such as 'pension casino' and 'election-driven share price manipulation' while even raising the specter of a special prosecutor and presidential impeachment."
Kwon directly rebuffed the PPP's 182 trillion won loss claim, saying it was "completely at odds with the facts." He said the figure reflected changes in the valuation of shares in some listed companies held by the fund — not losses across the fund's entire portfolio.
He added that the national pension fund's cumulative return from January through July this year stood at 14.84 percent, the highest among pension funds worldwide.
Kwon also denied claims that the government had blocked the national pension from selling shares. He explained that the Fund Management Committee's temporary suspension of rebalancing in January was an adjustment of investment weightings, noting that a sharp rally in domestic markets had pushed the fund's domestic equity allocation to 24.5 percent by the end of February.
He said that had the fund sold domestic shares in line with existing guidelines, "large-scale selling pressure and market disruption would have been unavoidable."
On claims that the alleged losses would accelerate fund depletion, Kwon said the fund's projected exhaustion date was 2055 under 2023 estimates and 2064 under last year's estimates. He added that "it is inappropriate to assess the fund's depletion timeline based on short-term return fluctuations."
"The national pension is a fund entrusted with securing the retirement of the Korean people," Kwon said. "It must be evaluated on long-term returns and stability — not short-term investment performance — and judged by the interests of its subscribers."
He added that the PPP "must not brand the people's retirement savings as speculative money or use them as a tool for political conflict."
Meanwhile, Kwon said leading indicators for Seoul's housing supply have been improving. He said housing permits in Seoul over the past six months totaled 36,000 units, up 74 percent from the same period last year, while ground-breakings reached 17,000 units, a 45 percent increase. He pledged to "put in place effective measures to ensure the improved indicators translate into actual move-ins and residential stability."
With the fourth anniversary of the Itaewon crowd crush approaching, Kwon also called on the government and local authorities to strengthen safety management during the Halloween period, saying the full truth of the tragedy must be established "without a shadow of doubt."
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