Government Commissions Research on National Pension Foreign-Currency Bond Issuance; Legislative Amendment Under Review
- #국민연금법
Nevertheless, it will be difficult to avoid criticism that the National Pension is being mobilized for won–dollar exchange-rate defense. Issuing foreign-currency bonds would intensify the pressure to generate returns exceeding the interest rate on the bonds, and investment earnings could be reduced by the corresponding interest costs.
The Pension Future Forum issued a statement on the 9th, calling for an immediate halt to discussions on foreign-currency bond issuance, asserting that "burdening the National Pension with foreign-currency debt and compelling it to bear the dual risks of exchange-rate and interest-rate fluctuations is not the right course of action."
Critics also point out that such a measure would contradict the fund management principle that the National Pension "should pursue the highest possible returns in order to alleviate the burden on contributors — particularly future generations."
