The National Pension Should Follow the Model of the Monetary Policy Board: Pension Future Forum Calls for Transition to an Expert-Led Independent Governing Body (February 27, 2026)
- #연금특위
Calls have been raised for the National Pension Fund's investment governance structure—currently centered on the Ministry of Health and Welfare—to be reorganized into an expert-led "independent collegial body" modeled on the Bank of Korea's Monetary Policy Board (MPB).
According to the Pension Future Forum on the 27th,
experts have pointed out that decision-making regarding the National Pension is at risk of being driven by political interests, and that the governance structure for National Pension decision-making must be reformed to secure the fund's independence and professional expertise.
(Excerpt omitted)
Professor Kim Hak-ju of the Department of Social Welfare at Dongguk University analyzed that the government's preference for operating around the Fund Management Committee (FMC) and its subordinate Stewardship Responsibility Specialist Committee—which deliberates on voting rights at general shareholder meetings—rather than pursuing structural independence is driven by a desire to maintain market control. He also cited opposition from labor and civic organizations to finance-professional-led management as a contributing factor.
Experts noted that the current National Pension decision-making governance system suffers from low professional expertise due to a shortage of chief investment officer (CIO)-level investment specialists.
Kim Sang-cheol, chair of the Department of Social Welfare at Hansei University (and former President of the Korean Association of Public Finance Policy), explained that the current CIO—the head of the Fund Management Division—holds only the legal status of an executing officer rather than that of the ultimate investment decision-maker, and that the CIO's autonomy and independence in core decisions such as strategic asset allocation (SAA) are severely constrained.
Professor Kim Hak-ju pointed out that this governance structure of National Pension fund management gives rise to politically driven decision-making, the absence of a merit-based system for selecting committee members, and a lack of investment committee independence.
He noted that as ministerial and other personnel appointments change with each administration, the risk of distorted investment decision-making increases, and that the insufficient proportion of specialist investment committee members with global investment experience contributes to a lack of both independence and professional expertise.
(Excerpt omitted)
Experts urged that Korea's National Pension governance structure be transformed, as in advanced economies, into a standing independent body modeled on the Bank of Korea's Monetary Policy Board (MPB). The MPB convenes seven top macroeconomic and financial experts who determine the nation's monetary and credit policy in a state of complete independence from political power.
Professor Kim Sang-cheol stated that "the National Pension must also establish a fully independent board operating under a professional fiduciary responsibility model,"
arguing that "the Fund Management Committee should be elevated to a standing committee directly under the President, or one with full independence, and composed exclusively of professionals with more than ten years of practical experience in asset management, alternative investment, and risk management."
https://m.newspim.com/news/view/20260227000449
