Wider Stock Activity for Funds

In a bid to boost the nation's stock markets, the government will revise laws this year to allow 41 pension funds to invest in equities, the Ministry of Finance and Economy said Thursday. Current laws governing the administration of pension funds prohibit many of them from investing in stocks.

"Of the nation's 60 pension funds, 41 are restricted from investing in stocks," an official at the ministry said. "We have requested that 19 government ministries that are connected to the matter revise their laws to pave the way for these funds to invest in stocks." The 41 funds in question are all public pension funds, including military welfare funds and defense industry promotion funds.

"We have asked the related ministries to insert a clause on 'stock investment functions' when they revise their laws regarding pension funds," the official said. Most of the laws related to pension funds will probably be modified to enable the investments by the time the National Assembly meets for its regular session in the fall, he said.