[2021 National Audit] Employment Minister: "Will Take a Close Look at the '2.8%' Employment Insurance Fund Yield"

October 6 National Assembly Environment and Labor Committee Employment Ministry Audit

National Pension 7.5%, Teachers' Mutual Aid Association 9.1%, Industrial Accident Insurance Fund 6.3%
Employment Fund Yield 2.8%... Minister An Kyung-duk "Yield Management"

Minister of Employment and Labor An Kyung-duk speaking at the National Assembly Environment and Labor Committee's Employment Ministry audit held at the Government Sejong Complex on the 6th. (Photo by Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] An Kyung-duk, Minister of Employment and Labor, said on the 6th during the National Assembly audit, "We will take a close look to see if there are any issues with the employment insurance fund's rate of return."

Minister An made this remark during the National Assembly Environment and Labor Committee's audit of the Ministry of Employment and Labor held at the Government Sejong Complex in the afternoon, stating that he would raise the fund's rate of return, which is only 2.8%.

Kim Sung-won, a member of the People Power Party, pointed out that this year's rate of return for the National Pension Service is 7.5%, the Teachers' Pension is 9.1%, and the Industrial Accident Compensation Insurance Fund is 6.3%, while the employment insurance fund is only 2.8%. He then asked, "What is the reason the employment insurance fund has hit rock bottom?"

Minister An responded, "Due to the COVID-19 crisis, employment conditions worsened significantly, leading to a substantial increase in expenditures for employment maintenance and unemployment benefits (from the employment insurance fund)."

Assemblyman Kim criticized that because the fund is managed mainly through short-term asset investments, a vicious cycle of poor returns continues. He added, "We need to consider measures to attract more public fund management funds or drastically reduce expenditures."

In response, Minister An said, "I agree with the criticism, and although the Ministry of Employment and Labor has prepared its own financial soundness measures for the fund, we will take a close look to see if there are any issues with the rate of return. However, I would like to mention that during the COVID-19 crisis period, due to liquidity issues, it was not possible to invest in high-risk products."

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