People Power Party lawmaker Yoo Sang-beom criticized South Korea's National Pension Fund rebalancing suspension during a Budget and Accounts Special Committee session on the 24th, calling the measure "deformed" and demanding document submission from the Ministry of Health and Welfare. The lawmaker stated the first-half rebalancing suspension caused foreign investors to sell 149 trillion won worth of assets and led to sharp exchange rate increases, citing analysis from global investment bank Barclays that pension funds acted as volatility amplifiers. Yoo linked the policy change to President Lee Jae-myung's remarks about the National Pension, alleging the decade-long diversified investment principle collapsed immediately after the president's statement, raising what he described as serious privatization suspicions.
Lawmaker Alleges Foreign Capital Outflow and Presidential Influence
Yoo Sang-beom stated during the National Assembly session that "this year's first-half deformed rebalancing suspension of the National Pension made only foreigners sell 149 trillion won and leave, causing a sharp rise in exchange rates, and even global IB Barclays directly pointed out that pension funds played the role of volatility amplifiers." The lawmaker added, "In particular, immediately after President Lee Jae-myung's remarks that the National Pension should also be considered, the 10-year diversified investment principle collapsed, so suspicions of privatization of the fund are currently very strong."
Ministry Fails to Submit Three Requested Document Categories
Yoo revealed that he requested three core documents on the premise of confidential review for investigation during the settlement audit: details of prior consultations with related government agencies including the Presidential Office, foreign exchange market impact simulation reports at the time of rebalancing suspension, and Fund Management Committee meeting minutes and normalization roadmap. The lawmaker pointed out that the Ministry of Health and Welfare did not submit even a single document.
Yoo stated, "According to Article 4 of the National Assembly Testimony and Appraisal Act, except for national secrets related to military diplomacy and North Korea relations, you cannot refuse the National Assembly's request for document submission on the grounds of official secrets," demanding the Ministry of Health and Welfare submit the materials.
Party Demands Special Activity Expense Details and Official Appearance
Yoo also requested submission of special activity expense details for the Presidential Office, National Security Office, and three special prosecutors, demanded in the name of all People Power Party Budget and Accounts Committee members on the same day. The lawmaker stated, "Everyone will remember what the Democratic Party did in 2024 regarding the special activity expenses of the prosecution and Presidential Office," adding, "When they refused to submit details on the grounds of investigation obstruction, the entire special activity expenses were cut. The agencies now are refusing to submit materials for the same reason."
Yoo emphasized, "There is not a single document related to this, so how can we conduct an audit," stating, "If the materials are not submitted, we will have no choice but to withhold approval review for that part."
The People Power Party also requested the attendance of Kim Yong-beom, Presidential Policy Office Director, on the same day. Lawmaker Bae Jun-young argued, "I understand that the Presidential Office set important frameworks not only for the budget but also for the supplementary budget," stating, "Policy failures and fiscal waste confirmed in the settlement must be reflected in next year's budget compilation, so the Policy Office Director who handles numbers and policies must come out."
FAQ
What did the People Power Party lawmaker demand from the Ministry of Health and Welfare on the 24th?
Lawmaker Yoo Sang-beom demanded three categories of documents: details of prior consultations with government agencies including the Presidential Office, foreign exchange market impact simulation reports at the time of rebalancing suspension, and Fund Management Committee meeting minutes and normalization roadmap. The Ministry of Health and Welfare did not submit any of the requested documents.
Why did the lawmaker criticize the National Pension rebalancing suspension?
Yoo stated the first-half rebalancing suspension caused foreign investors to sell 149 trillion won worth of assets and led to sharp exchange rate increases. He cited analysis from Barclays that pension funds acted as volatility amplifiers and alleged the policy change occurred immediately after President Lee Jae-myung's remarks about the National Pension, claiming the decade-long diversified investment principle collapsed.
