Starting this month, the National Pension Service (NPS) will increase its insurance premiums, leading to growing dissatisfaction online amid ongoing controversies regarding its domestic stock investments.
According to the NPS on July 13, the maximum monthly income standard will rise from 6.37 million won to 6.59 million won, while the minimum will increase from 400,000 won to 410,000 won, effective until June of next year.
This adjustment reflects a 3.4% increase in the average income of all subscribers over the past three years, which is used to calculate both the NPS premiums and future pension payouts.
The most affected will be subscribers earning over 6.37 million won per month. With the increase in the maximum limit and a rise in the premium rate from 9% to 9.5% due to pension reform, the monthly premium will increase from 605,150 won to 626,050 won, an increase of 20,900 won.
However, for employees, the company covers half of the premium, resulting in an actual personal burden of about 10,450 won per month.
As news of the increased premium burden spread, online communities began to voice criticism regarding the NPS's management of domestic stocks.
Comments included, "Isn't it time to announce how much the National Pension has lost?" and "They said it would be extended for decades, but did they lose all that money?" Others questioned, "Who prevented the National Pension from selling stocks?" and "Did the National Pension manipulate stock prices?" Many expressed frustration, stating, "Losses are reported as losses, yet premiums are still being collected."
Particularly, some investors noted, "In the past, many individual investors followed the pension funds' strategy of buying low and selling high, but that pattern has completely collapsed recently. Now, it's hard to trust and follow the pension funds anymore."
This backlash has intensified following the NPS's decision to increase its domestic stock allocation. Earlier, on January 30, Maeil Business Newspaper reported that the NPS Fund Management Committee decided to lower its target allocation for overseas stocks from 38.9% to 37.2% while increasing the target for domestic stocks from 14.4% to 14.9%.
At that time, the committee also decided to allow a maximum six-month delay in rebalancing, even if it exceeded the strategic asset allocation (SAA) limits. This led to speculation that the NPS would not sell its holdings mechanically as it had in the past.
Additionally, it was revealed that the minutes from that meeting would remain confidential until 2030 due to concerns about their potential impact on financial market stability, further fueling investor criticism.
As the domestic stock market has experienced significant volatility, some individual investors have begun to offer various interpretations regarding the NPS's management strategies and investment performance. However, claims that the NPS was prevented from selling high-priced stocks to stimulate the domestic market, resulting in actual losses, have not been officially confirmed.
* This article has been translated by AI.
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