(Public Pension Strengthening People’s Action Statement, Yonhap Infomax, October 13, 2026) A Day Before the National Pension Service's Parliamentary Audit… Chairman Urged to Explain Allegations Surrounding the Real Estate Investment Office

A day before the National Assembly's audit of the National Pension Service, a civil society group called for a thorough explanation of the allegations surrounding the Real Estate Investment Office of the Fund Management Headquarters and of the results of an internal audit.

On the 13th, the Public Pension Strengthening People’s Action (Pension Action) issued a statement calling on Kim Sung-joo, Chairman of the National Pension Service, and Lee Kyu-hong, the newly appointed head of the Fund Management Headquarters (CIO), who were to appear at the parliamentary audit the next day (the 14th), to personally explain the problems at the Fund Management Headquarters' Real Estate Investment Office.

Pension Action is a coalition campaigning for public pension reform, made up of more than 300 civil society organizations, including the Korean Confederation of Trade Unions, the Federation of Korean Trade Unions, and People’s Solidarity for Participatory Democracy.

Pension Action said that while a flood of questions is expected at this audit on a range of pending issues surrounding the National Pension scheme, the fund, and the Service's operations, the foremost concern is whether Chairman Kim Sung-joo will give an account of the case of the former head of the Real Estate Investment Office at the Fund Management Headquarters.

The former head of the Real Estate Investment Office is under internal audit over allegations of having abused the authority to handle all domestic and overseas real estate investment to make improper personal demands, and of having behaved inappropriately.

Pension Action stressed that at this audit Chairman Kim must give a thorough account of the allegations surrounding the Real Estate Investment Office to dispel public distrust of the National Pension. It also made clear that a heavy disciplinary penalty would be needed if the internal audit confirms allegations of serious misconduct such as abuse of power.

Pension Action said, "Allegations of abuse of power and other misconduct were raised against the office head last year as well, and an internal audit by the Service concluded with no finding of wrongdoing, but the allegations are reported to have been raised again and a re-audit is under way."

It added, "In a special audit related to the past illegal merger of Samsung C&T and Cheil Industries, the then head of the Equity Investment Office at the Fund Management Headquarters was dismissed on grounds of serious regulatory violations," and "the head of the Real Estate Investment Office also appears unlikely to escape a heavy disciplinary penalty at a later disciplinary committee."

It stressed that the affair must not be dismissed as one individual's lapse or misconduct, but should be made an occasion to improve the internal control system of the Fund Management Headquarters.

It pointed out that, as allegations have recently surfaced that private interests intervened in several overseas investment processes, starting with the replacement of the external manager (GP) for Centerfield, the risk of individuals using decision-making authority over fund management to appropriate power for themselves has been exposed.

Pension Action said, "A heavy disciplinary penalty is a welcome development, but it is also true that one cannot help wondering whether the Service is trying merely to escape the crisis at hand by ending the matter at the level of individual misconduct, without properly accounting for other, bigger allegations."

It added, "The Real Estate Investment Office has generated constant controversy amid allegations that it pushed ahead with investments or tried to replace managers despite internal objections."

It also took issue with the Pension Service's opaque disclosure of information.

Pension Action pointed out, "Only as the audit date approached did the Service disclose, through the office of Representative Lee In-young, that regarding the Alternative Investment Committee's rejection of the replacement of the Centerfield external manager, it had tightened the voting requirements on conflict-of-interest grounds because a former head of the Support Division at the Fund Management Headquarters was serving as an adviser to the Jeonju office of the asset management company slated for replacement," adding, "On the various other allegations, the Service has consistently maintained that it cannot disclose results because audits are under way."

Finally, it argued that Chairman Kim and CIO Lee personally explaining the allegations and strengthening the internal control system is precisely how the National Pension can fulfill its proper function.

Pension Action said, "In the inaugural address, Chairman Kim Sung-joo stated that the National Pension had come to have strong roots that would not be shaken by undue outside interference and intervention," adding, "If so, the chairman must explain whether the inside of those roots is being properly checked for rot, and how healthy roots will be built."

It went on, "If the goal is 'a pension enjoyed by all,' efforts must be made to block attempts to create 'fund power enjoyed only by a select few' and to build a sound organizational culture."

It added, "We urge the chairman to account for the allegations without fail at this audit and to declare a commitment to working with the head of the Fund Management Headquarters to put in place measures to improve the internal control system and organizational culture of the Fund Management Headquarters."

Public Pension Strengthening People’s Action

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