The government and the National Pension Service (NPS) have stated that they have never discussed using part of the national pension fund to finance public rental housing.
According to Yonhap News on August 19, Jeong Eun-kyeong, Minister of Health and Welfare, said during a report to the National Assembly's Health and Welfare Committee that the idea of investing about 1% of the national pension fund in public rental housing was merely a suggestion from the chair of the National Assembly's Budget and Accounts Committee, adding, "There has been no prior discussion on this matter."
She emphasized, "The national pension fund will be managed according to the principles of profitability and stability."
Kim Sung-joo, Chairman of the National Pension Service, also stated, "The NPS has not discussed housing investment plans with the government or the National Assembly."
Minister Jeong explained that the decision to postpone adjustments to the domestic stock allocation earlier this year was made in consideration of market volatility.
Although the national pension's domestic stock allocation exceeded its target, the NPS delayed selling stocks in January and resumed sales in July. This led to allegations from opposition parties that the NPS had postponed stock sales to support the stock market ahead of local elections.
Jeong clarified, "The domestic stock allocation increased rapidly, and market volatility made it difficult to make decisions. The rebalancing rules were established in 2019 when the fund size was half of what it is now, and applying them mechanically could jeopardize profitability and stability."
Chairman Kim also noted that it is challenging to determine whether the recent stock market rise is due to structural changes or a temporary phenomenon related to the semiconductor boom, leading to a decision to monitor the situation for six months. He dismissed claims that the timing of stock sales was influenced by the upcoming local elections.
Meanwhile, Minister Jeong mentioned that the government is reviewing various scenarios regarding the basic pension reform plan and expects to announce it by the end of this month or early next month.
* This article has been translated by AI.
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