NPS struggles to bolster investment arm

The National Pension Service (NPS) is struggling to bolster its sagging investment arm, hit hard by the corruption scandal involving former President Park Geun-hye and her confidant Choi Soon-sil.

NPS Investment Management’ s relocation from Seoul to Jeonju, North Jeolla Province, has led to a massive worker exodus and made it difficult to recruit qualified fund managers.

According to government officials Sunday, the Ministry of Health and Welfare, which oversees NPS operations, is considering turning the pension management committee into a standing committee so it can review agendas more thoroughly.

The committee has been in charge of about 600 trillion won ($530.5 billion) of pension subscribers’ money, but was strongly criticized for having a “rubber-stamp committee” after its controversial approval of the Samsung C&T and Cheil Industries merger.

Through the deal, Samsung Electronics Vice Chairman Lee Jae-yong was able to increase his control of Samsung group.

Lee had three private meetings with the ex-president from 2014 to 2016, at which he is suspected of having sought NPS approval for the deal.

Choi also allegedly exerted undue influence over the pension fund to back the merger.

The committee also played a key role in saving ailing shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME).

It agreed to the shipbuilder’s debt rescheduling, which also caused a huge controversy, with many believing the government salvaged the company even though its viability was in doubt.

So far, the committee has been holding four to six three-hour meetings a year.

Experts believe this is not enough time and too infrequent for members to review the agenda thoroughly.

Also, the rule allowing only the committee chairman, the Minister of Health and Welfare, to set the meeting agenda has been criticized because it heavily depends on the government’s intentions.