Pension Fund Management
A highly-extensive audit is about to be launched regarding the entrusted management of pension funds in the wake of a corruption scandal at Hyundai Securities.
Recently, ruling Saenuri Party lawmaker Kim Yong-nam claimed that Hyundai Securities had embezzled 120 billion won (US$108 million) in fund operating income while managing 3 trillion won (US$2.7 billion) between 2008 and 2013 in place of the Ministry of Employment and Labor, Korea Post, Ministry of Strategy and Finance, and Ministry of Land, Infrastructure and Transport. The Financial Supervisory Service accused two wrap account managers at Hyundai Securities of illegal activities in July, too. According to the watchdog, they took out profitable bonds from an entrusted government account and handed over the bonds to other customers at below market prices.
“The corruption has remained unchecked for far too long, and the Financial Supervisory Service will have to check the fund management data very thoroughly without any further delay,” lawmaker Kim said. “We have looked into some major securities companies and found no problems,” the agency explained in response, adding, “The case of Hyundai Securities is because of the moral hazard of a small number of its employees.” Still, it is said that even the agency is not ruling out the possibility of a full-scale investigation. Hyundai Securities has denied all of the allegations concerning the scandal.