People Power Party Criticizes Use of National Pension Fund for FX Stabilization—'Burden of Currency Market Instability Shifted to Public Retirement'

"The National Pension Fund Is Not a Tool for Government FX Stabilization"

Emergency Inquiry Sought on High Exchange Rate Measures

(Seoul=Yonhap Infomax) Da Ye On On reports: Song Eon Seok, floor leader of the People Power Party, criticized the government's move to form a four-party consultative body—including the foreign exchange authorities and the National Pension Service (NPS)—to stabilize the foreign exchange market, stating, "Mobilizing the National Pension Fund for FX defense effectively shifts the responsibility for currency market instability, caused by the current administration's missteps, onto the retirement security of the entire population."

Speaking at a party strategy meeting at the National Assembly on the 25th, Song said, "Yesterday (the 24th), the Ministry of Economy and Finance, Ministry of Health and Welfare, Bank of Korea, and National Pension Service convened a four-party consultative body to discuss ways to utilize the NPS for FX stabilization."

He added, "As the USD/KRW exchange rate surged to the 1,470 won level, the government has ultimately turned to the National Pension Fund, which represents the retirement assets of all citizens."

Song further argued, "This is an irresponsible act that not only exacerbates the already unstable future faced by the younger generation due to concerns over the depletion of the National Pension Fund, but also shifts the burden of FX market stabilization onto them."

He continued, "If the NPS is mobilized for FX defense now, there is growing public concern that the fund could also be tapped for other large-scale projects, such as the annual $20 billion cash investment in the US, the $150 billion MASGA project, $100 billion in energy purchases, and another $150 billion in corporate investments in the US."

Song emphasized, "The National Pension Fund is neither a tool for government FX stabilization nor for managing approval ratings. It is the retirement livelihood fund for all citizens. I strongly urge the administration not to undermine the public's retirement security and future for its own interests."

Kim Do Eub, the party's policy chief, announced plans to seek an emergency parliamentary inquiry to address the high exchange rate situation.

Kim noted that South Korea's economy is facing a triple challenge of high exchange rates, high inflation, and high interest rates, stating, "The exchange rate is nearing levels seen during the IMF crisis, and the persistent weakness of the won is driving up import prices, putting broad-based pressure on both companies and households."

He added, "We are witnessing classic stagflation, with the economy cooling while prices soar. The sharp rise in the exchange rate is increasing costs for raw materials and components, raising market interest rates and debt burdens, and weighing heavily on the overall economy."

Regarding the formation of the four-party consultative body involving the Ministry of Economy and Finance, Ministry of Health and Welfare, Bank of Korea, and NPS, Kim criticized, "The government and financial authorities responded too complacently, and have now resorted to forming this body to address the exchange rate issue—ultimately signaling the mobilization of the National Pension Fund."

Kim added, "Experts warn that if the NPS is used as a relief pitcher for FX defense, the profitability and stability of the public's retirement funds could be compromised. Therefore, the People Power Party, which chairs the National Assembly's Strategy and Finance Committee, will push for an emergency inquiry into high exchange rate measures."

d​yon@yna.co.kr

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