Opposition: NPS turned into a political tool; parliamentary probe needed into rebalancing delay

[Financial News] The People Power Party said on the 14th that the National Pension Service had been reduced to a political tool for temporarily propping up the stock market, arguing that a parliamentary investigation should examine whether there had been political interference in the delay to rebalancing and the increase in the allocation to domestic stocks.
People Power Party lawmakers on the National Assembly’s Health and Welfare Committee held a press conference that day at the National Assembly Communication Center and said, “We call for a parliamentary investigation to determine whether there was political interference in the delay to National Pension Service rebalancing and the increase in the share of domestic stocks, assess the adequacy of risk management, and determine the extent of harm to the public.”
The People Power Party suspects political interference by the ruling camp in the National Pension Fund Management Committee’s temporary deferment of domestic stock rebalancing on Jan. 26 and its decision on May 28 to raise the target allocation to domestic stocks from 14.9% to 20.8%. The party says the moves were politically motivated to boost the domestic stock market ahead of the June 3 local elections.
They asked, “Who proposed the change, and what analysis was the decision based on? Were the risks adequately considered in the event of a sharp drop in stock prices?” They also asked, “Did the government’s policy demands or political considerations ahead of the election take precedence over expert judgment?” They called for the release of documents, including minutes of the Fund Management Committee meetings that decided to delay rebalancing and take other related measures.
They say a parliamentary investigation should examine the circumstances behind the decisions to delay rebalancing and increase the share of domestic stocks, as well as whether there was political interference. They added, “The adequacy of risk management and the extent of harm to the public must be assessed,” and argued, “The effects on market volatility and individual investors’ losses must also be assessed.”
They called for an investigation to determine whether the National Pension Service’s independence and expertise were properly upheld in the decision-making process, saying, “If experts raised concerns or objections, it must be made clear on what grounds a different decision was made, whether political considerations took precedence over professional judgment, how the process unfolded, and where responsibility lies.”
Addressing the Democratic Party of Korea, they said, “Join the parliamentary investigation to uncover the allegations surrounding the public’s retirement funds,” adding, “There can be no divide between the ruling and opposition parties when it comes to money that represents a lifetime of savings for the public.”

[email protected] Lee Hae-ram Reporter