The Democratic Party of Korea pushed back on the People Power Party's claim that delaying the National Pension Service's domestic stock sales caused a loss of 182 trillion won ($128 billion). The party said the NPS has posted a high return this year and that temporarily suspending rebalancing — adjusting asset allocation — was an appropriate step to ease pressure to sell shares amid a surge in the domestic stock market. The Democratic Party also said Seoul's housing permits and construction starts are improving and pledged to accelerate efforts to expand housing supply.
Kwon Chil-seung, chair of the Democratic Party's policy committee, said at a parliamentary audit strategy meeting at the National Assembly on the 22nd that "the People Power Party's claim of a 182 trillion won loss is not true," adding that "changes in the valuation of shares in some listed companies cannot be treated as a loss for the entire fund." Kwon said the NPS posted a cumulative return of 14.84% from January through July this year, among the highest of any pension fund in the world, and accused the People Power Party of using the public's retirement savings as a tool for political fights.
Kwon said the temporary suspension of domestic stock rebalancing, decided by the NPS fund management committee in January, was also an asset allocation adjustment made in response to the stock market surge. "Because of the surge in the domestic stock market, the share of domestic equities had grown to 24.5% by the end of February," he said. "Had we sold domestic stocks under the existing standard, large-scale selling pressure and a market shock would have been unavoidable." He also rejected as untrue the People Power Party's allegation that the government restricted stock sales.
Kwon disputed the claim that the date of the pension fund's depletion has been moved up. "In the 2023 financial projection, the fund was expected to run out in 2055, but last year's projection pushed that back to 2064," he said. "Long-term financial projections take into account a range of variables, including an assumed 4.5% return, so it is inappropriate to assess the depletion year based on short-term swings in returns." He added that the NPS should be evaluated on long-term profitability and stability in the interest of subscribers, not as a short-term investment.
The Democratic Party also said leading indicators of housing supply in Seoul are improving and that it would shorten permitting and construction start procedures to increase actual supply. "Over the past six months, housing permits in Seoul totaled 36,000 units, up 74% from a year earlier, and construction starts rose 45% to 17,000 units," Kwon said. "The slump in construction starts has passed its low point and is showing a recovery." He said the party would speed up housing supply by shortening land compensation and acquisition periods, using modular housing and expanding the role of fast-track permitting support centers.
Chun Joon-ho, senior deputy floor leader of the Democratic Party, called on the appeals court to uphold the lower court's ruling ahead of the verdict scheduled for the 23rd in the political funds law case involving Seoul Mayor Oh Se-hoon. "The trial court recognized that Oh's side commissioned opinion polls from Myung Tae-kyun and that a backer paid 21 million won on his behalf," Chun said. "Falsehood cannot defeat the truth." He also criticized remarks on insurrection by People Power Party lawmaker Kim Tae-gyu, demanding that Kim resign as senior floor spokesperson and from the National Assembly Steering Committee and face disciplinary action. On the reduced sentence given to former Justice Minister Park Sung-jae on appeal, Chun objected that "the credit for the failure of the insurrection belongs to the people, not to Park Sung-jae."