Tuesday, August 5th, 2014
SEOUL, KOREA - The total balance of ten government funds including the National Sports Promotion Fund is estimated at 7 trillion won. These funds are mostly deposited in banks or invested in financial products. In a situation where large corporations are criticized for not investing their retained earnings, it is indefensible for the government to let the large amount of money lie fallow.
According to Congressman Seen Hak-yong (New Politics Alliance for Democracy) and an internal report of the Ministry of Strategy and Finance obtained by the Korea Economic Daily, the ten public funds including the National Sports Promotion Fund, Culture and Art Promotion Fund, Credit Guarantee Fund for Farmers and Fishermen, and Electric Power Industry Foundation Fund have surpassed their proper levels and their total balance was in excess of 7 trillion won.
Indeed, the Ministry of Strategy and Finance investigated all 49 public funds (except social welfare-related funds and the foreign exchange stabilization fund) late last year and reached a verdict that ten of the funds were excessive in their volume. At the time, the ministry recommended that the funds be entrusted with the public fund management fund.
But the percentage of the money entrusted to the fund is only 22.1 percent, or 1,545 billion won, in total. The remaining balance is still deposited in bank accounts or invested in stocks and bonds through pension funds.
National Assemblyman Seen said, "The surplus money must be invested productively as a way to stimulate the economy by reviving the mandatory scheme abolished in 2006."
