Reform on Pension Fund Governance and Management: The 1998 Reform of Korea National Pension Fund

41 Pages Posted: 7 Feb 2011

See all articles by Woochan Kim

Woochan Kim

Korea University Business School; European Corporate Governance Institute (ECGI); Asian Institute of Corporate Governance (AICG)

Date Written: February 7, 2011

Abstract

The 1998 governance reform democratized the management of National Pension Fund (NPF) by filling majority of seats in the Management Committee with non-government civilians representing pension policyholders. The reform also abolished the practice of NPF surrendering pension surplus into the hands of government bureaucrats. Interestingly, this reform was initiated, led, and sustained by a civil organization named People’s Solidarity for Participatory Democracy (PSPD). Despite the 1998 Reform, however, there are remaining issues to be resolved. The lack of investment management expertise among the Management Committee members and the lack of its leadership over investment policy pose serious problems.

Keywords: National Pension Fund, Korea, fund governance, public pension reserve funds, civil organization

JEL Classification: G18, G23, G28

Suggested Citation

Kim, Woochan, Reform on Pension Fund Governance and Management: The 1998 Reform of Korea National Pension Fund (February 7, 2011). Available at SSRN: https://ssrn.com/abstract=1756483 or http://dx.doi.org/10.2139/ssrn.1756483

Woochan Kim (Contact Author)

Korea University Business School ( email )

LG-POSCO Bldg #524
Anam-Dong, Seongbuk-Ku
Seoul, Seoul 136701
+822-3290-2816 (Phone)
+822-922-7220 (Fax)

HOME PAGE: http://biz.korea.ac.kr/professor/wckim

European Corporate Governance Institute (ECGI) ( email )

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

Asian Institute of Corporate Governance (AICG) ( email )

1, 5-ga, Anam-dong
Sungbuk-gu
Seoul, 136-701
Korea, Republic of (South Korea)

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