Civil servants' pension fund raises target share of domestic stocks to 10%... Opposition asks, "Is this a tool to boost the stock market?"

[Financial News] It was reported on the 25th that the Government Employees Pension Service has raised its target for domestic stock holdings to keep the share at 10% or higher. Along with the recent controversy over the postponement of National Pension Service (NPS) rebalancing, critics are accusing the Lee Jae-myung administration of using pension funds to support the stock market.
According to Park Sang-woong of the People Power Party, a member of the Special Committee on Budget and Accounts of the National Assembly, the Government Employees Pension Service's medium- to long-term asset allocation plan as of the end of last year calls for domestic stocks to remain at 10% or higher through 2029.
Under the previous Yoon Suk Yeol administration, the pension fund had planned to gradually reduce its domestic stock share to 7% by 2029. With the launch of the Lee Jae-myung administration, it has shifted course and decided to keep the share at 10% or above.
Park said, "The issue is not the expansion of domestic stock investment itself. We need to examine why the investment direction of public pension funds changed at a time when the government is emphasizing stock market stimulus," suggesting possible government pressure.
He also called for an inspection by the Board of Audit and Inspection (BAI). In response, BAI Chairman Kim Ho-cheol told the Special Committee on Budget and Accounts (SCBA), "I agree that an audit is necessary, and we will conduct one if needed."
As public criticism grows amid sharp swings in the domestic stock market, opposition lawmakers have raised suspicions that the government is intervening in the postponement of NPS rebalancing. With news also emerging that the Government Employees Pension Service has adjusted its target share of domestic stocks, the controversy is expected to continue.

[email protected] Kim Yun-ho Reporter