Democratic Party's Kwon rejects People Power Party claim of 182 trillion won pension loss
In short
Kwon Chil-seung (권칠승), policy chief of the Democratic Party, said on 22 October that the People Power Party's claim of a 182 trillion won loss in the national pension fund is false. He said the figure reflects changes in the value of some listed shares, not a loss across the whole fund, and told the party to stop what he called political agitation.
Read the full story 2 min read
Kwon Chil-seung (권칠승), policy chief of the Democratic Party, said on 22 October that the People Power Party's claim of a 182 trillion won loss in the national pension fund is 'completely different from the facts'. He spoke at a meeting on preparations for the parliamentary audit at the National Assembly and called on the People Power Party to 'stop political agitation right now'. [ 1 , 2 , 3 ]
Kwon said groundless claims about the national pension were spreading and stirring public anxiety. According to Newsis, Yonhap and Dong-A Ilbo, he said the People Power Party had used terms such as 'pension fund casino' and 'election-driven share price support', and had begun to speak of a special counsel and the impeachment of the president. [ 1 , 2 , 3 ]
On the figure itself, Kwon said it reflects changes in the value of some listed shares held by the pension fund and differs from a loss across the whole fund. Newsis and Dong-A Ilbo quoted him as saying the fund's cumulative return from January to July was 14.84%. Newsis reported him as saying this was the best among the world's pension funds, while Dong-A Ilbo's text says the best 'among 3 pension funds'. [ 1 , 2 ]
Kwon also rejected the claim that the government blocked share sales. He said the fund management committee's temporary postponement of rebalancing in January was an adjustment of investment weights. According to Newsis and Dong-A Ilbo, he said domestic stock market gains had lifted the fund's domestic share weight to 24.5% by the end of February, and that selling under the old criteria would have meant heavy selling pressure and market shock. [ 1 , 2 , 3 ]
Kwon dismissed the claim that large losses brought forward the date the fund would run out. He said the return assumed in the projection is 4.5%, a long-term forecast that takes various variables into account, so it is inappropriate to judge the exhaustion date from short-term return changes. Dong-A Ilbo added his statement that the projected exhaustion year was 2055 in the 2023 projection and 2064 in last year's projection. [ 1 , 2 ]
He said the People Power Party should not label people's retirement money as speculative funds or use it as a tool of political strife. Yonhap reported that Kwon chaired the meeting in place of floor leader Han Byung-do (한병도), who did not attend because of other engagements. Kwon also spoke on housing supply, including shortening land compensation and expropriation periods and using modular housing. [ 1 , 2 , 3 ]
Why it matters
The dispute shows that the national pension fund's domestic stock investments have become a point of conflict between the two parties. The documents give only the Democratic Party's side, so the opposition's claims are not independently tested here.
Key facts
- Democratic Party policy chief Kwon Chil-seung spoke on 22 October at a National Assembly meeting on preparations for the parliamentary audit. [ 1 , 2 , 3 ]
- Kwon said the People Power Party's claim of a 182 trillion won loss is untrue because it reflects changes in the value of some listed shares held by the pension fund, not a loss across the whole fund. [ 1 , 2 , 3 ]
- Kwon said the fund's cumulative return from January to July this year was 14.84%. [ 1 , 2 ]
- He said the January decision of the fund management committee to postpone rebalancing temporarily was an adjustment of investment weights, not a government block on share sales. [ 1 , 2 , 3 ]
- Kwon said domestic shares had grown to 24.5% of the fund by the end of February, and that selling under the old criteria would have caused heavy selling pressure and market shock. [ 1 , 2 ]
- He said the fund return assumed in the projection is 4.5%, so short-term return swings should not be used to judge when the fund runs out. [ 1 , 2 ]
Confirmed by several sources
- Kwon said the People Power Party's 182 trillion won loss claim is untrue and reflects changes in the value of some listed shares, not a loss across the whole fund. [ 1 , 2 , 3 ]
- Kwon said the claim that the government blocked share sales is untrue, and that the fund management committee's temporary postponement of rebalancing in January was an adjustment of investment weights. [ 1 , 2 , 3 ]
- Kwon said the People Power Party used terms such as 'pension fund casino' and 'election-driven share price support' and spoke of a special counsel and the impeachment of the president. [ 1 , 2 , 3 ]
Still unclear
- Whether the fund's 14.84% return for January to July was the best among pension funds worldwide or among three pension funds. Newsis quotes Kwon as saying it was the best among the world's pension funds, while Dong-A Ilbo's text says 'among 3 pension funds'. Yonhap does not give the figure.
- The People Power Party's own account of its 182 trillion won loss claim. The documents carry only Kwon's description and rebuttal of the claim, not the People Power Party's statement.