Kim Sung-ju, the new National Pension Service chair, said, "The National Pension Service must step up to solve Korea's severe dwellings problem," adding, "We should invest for young people who have delayed marriage until they can buy a home and for newlyweds who want a nest."
At an inauguration ceremony on Dec. 17 at the service's headquarters in Jeonju, North Jeolla, Kim said, "The National Pension Service should serve as a source of funding to supply dwellings at reasonable and rational prices. This is my long-held dream," and stated accordingly.
Kim said, "The National Pension Service must answer the question of why it invests in overseas real estate but does not invest a single penny to solve Korea's severe dwellings problem," adding, "Through investment in public dwellings, we will encourage marriage and childbirth to overcome the demographic cliff and lay the groundwork to expand pension subscribers."
Kim cited the case of social housing investments by APG, the asset manager of ABP (National Civil Pension Fund), the Netherlands' public pension. He said, "Forty percent of all dwellings in the Netherlands are social housing, and 70% of social housing was built with pension fund investment," adding, "APG includes social housing and microfinance in its responsible investment principles."
He added that he would also reference Singapore's Central Provident Fund (CPF) case of "Affordable Housing." The CPF backed policies that reduced housing costs by allowing members to use their savings to purchase public dwellings and repay loans.
During the Moon Jae-in administration, a plan was pursued to allow the National Pension Service to be used for public-sector investments such as rental dwellings, but it fell through. Critics said it was inappropriate to mobilize the National Pension Service for government projects whose profitability was not secured and warned it could end up being used like a "slush fund" for government policy.