Insurance funds score low on sovereign trust evaluation

Korea’s state-run funds that manage employment insurance, workers’ safety insurance, agriculture assets, and arts and culture businesses scored “low” in the government’s evaluation of sovereign management trusts, the Ministry of Strategy and Finance said Tuesday.

In a report of over 140 funds to Cabinet members, the Finance Ministry said they performed below average in part due to a lack of professional human resources that can manage those funds worth some 14 trillion won ($12.4 billion).

Meanwhile, the National Pension Service, Korea’s pension fund manager, teachers’ pension and funds managing lines of credit guarantees and deposit insurance performed “exceptionally well,” the ministry said.

The government plans to follow through its principles by increasing the budgets for management funds that received good grades, while those that underperformed will need to operate under tighter spending programs.

(hkp@heraldcorp.com)