Stock Investments Of Pension Fund Called Below Par

Lawmakers from both government and opposition parties grilled In Kyung-suk, head of the National Pension Corporation, on Wednesday over what they saw as ineffective pension-fund investments in the stock market.

"Since last August, the government has announced on four occasions that it would expand stock market investment by national pension and other funds," Representative Yoon Yeo-joon of the opposition Grand National Party said at a meeting of the National Assembly's Health and Welfare Committee. "The announcements did not push up the stock market index, but dragged it down on three occasions. It proves that investing the pension and funds into the stock market will not buoy it."

Representative Choi Young-hee of the ruling Millennium Democratic Party seconded Mr. Yoon's remarks, saying that drops in the stock price indexes reflect market mistrust of government-led pump-priming measures.

Other lawmakers pounded on the lackluster performance by the corporation last year.

"The corporation lost 1.6 trillion won [$1.25 billion] in stock investments last year. It is a level of performance falling far behind the market's average performance," Representative Son Hi-jung of the Grand National Party said.

Other complaints included allegations that churning of investments cost the pension corporation 11 times more in fees than necessary, and that more investment managers are needed.

Mr. In denied that the government handed down specific directives on the pension's investments in the stock market.

by Kim Jung-ha