People Power Party leader Jang Dong-hyeok criticized the Democratic Party of Korea's push to temporarily suspend rebalancing of the national pension fund's domestic share holdings, saying the move would turn the Kospi into a "casino."
"They already turned the stock market into a gambling den with the national pension fund, and now they're about to set up a full-blown Kospi casino," Jang wrote on his Facebook page Monday. "Now they say they'll even change the law to increase the national pension's investment in the domestic stock market. It's a situation where Lee Jae Myung plays the bankroller and the Democratic Party runs the operation."
Earlier, The Herald Business exclusively reported that the Democratic Party plans to introduce a bill allowing the fund's target allocation for domestic shares to be adjusted or the timing of sell-offs to be temporarily suspended under the fund management plan.
The move aims to prevent a wave of selling that could amount to tens of trillions of won in large-cap domestic stocks, including Samsung Electronics and SK hynix, should the national pension resume rebalancing its domestic equity holdings.
Sharing the article, Jang said, "Why do we set standards for how much of the domestic stock market pension funds should hold? Because it is the precious retirement asset that the people have entrusted to the fund."
He added, "The point is to invest and grow the assets — not to use them to prop up the stock market. It is already risky enough."
Jang went on to say that foreign investors were rapidly leaving the domestic stock market, adding that the future assets of young people were under threat.
Turning to the Democratic Party directly, Jang said, "Do you believe you can just walk away once your time in power is over? Before long, you will face judgment under the law — and, more fearfully, you will stand before the people's judgment."
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