[2021 National Audit] Rep. Kim Won-i: Increase in 국민연금 Investment in Japanese War Crime Companies

Japan's Top 3 Chaebol War Criminal Companies, Including Mitsubishi, Increase Direct Investments

At the National Assembly audit, National Assembly member Kim Won-i pointed out the National Pension Service's investment in Japanese war crime companies. Photo by Kim Won-i's office

[Asia Economy Honam Reporting Headquarters Reporter Seunghyun Jeong] Kim Won-i, a member of the Democratic Party of Korea and National Assembly member (Health and Welfare Committee, Mokpo City), pointed out during the National Pension Service audit, "The National Assembly has requested for years to exclude investments in Japanese war crime companies, but investments have actually increased."

On the 14th, through a press release, Representative Kim stated that the National Pension Service has invested in 119 out of 299 war crime companies announced by the Prime Minister's Office in 2012 since 2016, meaning nearly half of the Japanese war crime companies received investments.

In particular, among the 119 war crime companies, 31 companies were continuously invested in for six years from 2016 to February this year. It was also confirmed that significant investments were made in the three major Japanese conglomerates known as representative war crime companies during the Pacific War era?Mitsubishi, Mitsui, and Sumitomo groups?and their subsidiaries.

Mitsubishi manufactured military supplies (military aircraft, warships, etc.) and was the main culprit in forcing 100,000 Koreans into forced labor. Although Mitsubishi apologized to victims in the U.S. and China for forced labor, it has not apologized to the Republic of Korea, arguing that "Korean labor was not illegal," making it a representative war crime company that still refuses to apologize.

The proportion of direct investments by the National Pension Service in the three major war crime conglomerates, including Mitsubishi, showed an upward trend. According to data submitted by the National Pension Service to Representative Kim Won-i's office, as of February 2021, 106.3 billion KRW was invested in Mitsubishi, 346.2 billion KRW in Mitsui, and 160.3 billion KRW in Sumitomo, totaling 612.9 billion KRW. Of this, direct investments by the National Pension Service amounted to 382.2 billion KRW (62.4%), which was higher than entrusted investments of 230.7 billion KRW.

Looking at the annual investment status of the National Pension Service in Japanese war crime companies, 71 companies received 1.1943 trillion KRW in 2016, and the investment amount increased every year, reaching 1.5706 trillion KRW in 68 companies this year, a 32% increase.

Also, examining Japanese war crime companies in which the National Pension Service invested more than 100 billion KRW, there were 2 companies with a total of 368.3 billion KRW in 2016, increasing to 5 companies with 1.0281 trillion KRW this year.

Through the National Assembly audit inquiry, Representative Kim pointed out, "Article 17 of the National Pension Fund Management Guidelines specifies considering responsible investments that take into account non-financial factors such as environment, society, and governance, yet continuing investments in war crime companies is problematic," adding, "Especially since the Prime Minister's Office clearly designated war crime companies, and these companies still have not apologized, the National Pension Service is instead increasing investments and enriching them."

He continued, "While it may help profitability in the short term, forced labor is a human rights issue," and said, "It is also problematic that no improvement efforts are shown simply because it does not violate investment principles. I sincerely hope that improvement measures will be found quickly, investment principles will be properly established, and the National Pension Service will become one that stands proudly before the people," concluding his inquiry.

This content was produced with the assistance of AI translation services.