Reform on Pension Fund Governance and Management: The 1998 Reform of Korea National Pension Fund
41 Pages Posted: 7 Feb 2011
Date Written: February 7, 2011
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: Suggested Citation