Article 101 (Establishment and Formation of Fund)

(1) The Minister of Health and Welfare shall establish the National Pension Fund (hereafter referred to as the "Fund" in this Chapter) to smoothly secure the financial resources necessary for the national pension services and to prepare a reserve fund to be appropriated for the benefits provided under this Act.
(2) The Fund shall be formed with the following financial resources:
1. Contributions;
2. Profits accrued from the operation of the Fund;
3. Reserves;
4. Surplus in the settlement of revenues and expenses of the Service.

Article 102 (Management and Operation of Fund)

(1) The Fund shall be managed and operated by the Minister of Health and Welfare.
(2) The Minister of Health and Welfare shall manage and operate the Fund using the following methods, in accordance with resolutions passed by the National Pension Fund Operation Committee established under Article 103, to maximize profits for the long-term financial stability of national pension, while investing in businesses to promote the welfare of current and former insured persons and beneficiaries to the extent of not compromising the financial stability of national pension: Provided, That in cases falling under subparagraph 2, the Minister shall purchase national bonds, following consultation with the Minister of Strategy and Finance:
1. Deposits or trusts in financial institutions prescribed by Presidential Decree;
2. Investment in the public sector for public projects;
3. Purchase, sale, and lending of securities under Article 4 of the Financial Investment Services and Capital Markets Act;
4. Transactions in the derivatives market for indexed financial investment instruments, among indexed products under Article 5 (1) of the Financial Investment Services and Capital Markets Act;
5. Welfare and loan services provided under Article 46 of this Act;
6. Acquisition and disposal of property for achieving the primary objective of the Fund;
7. Other projects to raise the Fund, as prescribed by Presidential Decree.
(3) Where the Fund is managed and operated by means other than those under paragraph (2) 5 and 6, a conscientious effort shall be made to outperform the market rate of return on each asset item: Provided, That where the Fund is deposited in the Public Capital Management Fund under the Public Capital Management Fund Act (hereinafter referred to as the "Management Fund") pursuant to paragraph (2) 2, the rate of return shall be determined at a level of at least the earning rate of state bonds with five years of maturity by the Public Capital Management Fund Operation Committee under Article 7 (2) of the same Act, following consultation with the National Pension Fund Operation Committee established under Article 103, as prescribed by Presidential Decree.
(4) Where the Minister of Health and Welfare manages and operates the Fund pursuant to paragraph (2) 3, he/she may take into account environmental, social, and governance factors related to investment targets, to achieve a long-term and stable revenue.
(5) The Minister of Health and Welfare shall process the accounting of the Fund as prescribed by Presidential Decree to clarify the operational performance and financial status of the Fund.
(6) The Minister of Health and Welfare may outsource the Service with part of the affairs concerning the management and operation of the Fund, as prescribed by Presidential Decree.

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Article 103 (National Pension Fund Operation Committee)

(1) The National Pension Fund Operation Committee (hereinafter referred to as the "Operation Committee") shall be established under the Ministry of Health and Welfare to deliberate and decide on matters concerning the operation of the Fund in the following subparagraphs:
1. Matters relating to guidelines for operation of the Fund;
2. Matters relating to consultation on interest rates on deposits in cases where the Fund is entrusted to the Management Fund;
3. Matters relating to the Fund operation plan;
4. Matters relating to the details of operation and use of the Fund under Article 107 (3);
5. Other important matters relating to the operation of the Fund, submitted as agenda items to be discussed at a meeting by the chairperson of the Operation Committee.
(2) The Operation Committee shall be comprised of the Minister of Health and Welfare as chairperson, and the Vice Minister of Strategy and Finance, Vice Minister of Agriculture, Food and Rural Affairs, Vice Minister of Trade, Industry and Energy, Vice Minister of Employment and Labor, and the chief executive officer of the Service as ex officio members, as well as the following members who shall be appointed by the chairperson:
1. Three persons recommended by employers' organizations to represent employers;
2. Three persons recommended by the federation of labor unions to represent employees;
3. The following persons representing individually insured persons:
(a) Two persons recommended by farmers’ and fishermen’s organizations;
(b) Two persons recommended by organizations related to self-employed persons, other than farmers’ and fishermen's organizations;
(c) Two persons recommended by consumer groups and civic organizations;
4. Two experts who have much knowledge and experience in the National Pension Scheme.
(3) Each member shall hold office for a term of two years, and may be reappointed consecutively only once: Provided, That the chairperson and each ex officio member shall remain in office until the end of his/her tenure as Minister, Vice Minister or chief executive officer.
(4) The chairperson shall convene and preside over meetings of the Operation Committee.
(5) The Operation Committee shall have meetings at least four times per year with a majority of incumbent members constituting a quorum and a resolution shall be adopted with the concurring votes of a majority of those present. In such cases, members absent from a meeting shall be deemed to have not exercised their voting rights.
(6) The Minister of Health and Welfare shall, in advance, submit materials necessary for the meeting in response to a request from the Operation Committee.
(7) Matters necessary for the organization, operation, etc. of the Operation Committee shall be prescribed by Presidential Decree.

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Article 103-2 (Minutes of Operation Committee Meeting)

(1) The chairperson shall write and keep the minutes of an Operation Committee meeting, including the date, time and place of the meeting, matters discussed and resolved, and detailed remarks by members present (hereinafter referred to as "minutes") and shall make public a summary of the main contents thereof.
(2) The chairperson shall make public the minutes one year after the date on which a meeting is held: Provided, That in cases of an agenda item likely to affect the fair operation of the Fund or the financial market stability, the minutes containing the relevant agenda item shall be made public after four years from the date on which the relevant meeting is held after being referred to the Operation Committee for resolution.
(3) Notwithstanding paragraph (2), if the competent Standing Committee of the National Assembly requests the minutes, the chairperson shall submit the minutes in private.
[This Article Newly Inserted by Act No. 11644, Mar. 22, 2013]

Article 104 (National Pension Fund Operational Practices Review Board)

(1) A National Pension Fund Operational Practices Review Board (hereinafter referred to as "Practices Review Board") shall be established under the Operation Committee to deliberate on and evaluate the followings with respect to the operation of the Fund:
1. Matters concerning the composition of assets operated by the Fund and the accounting of the Fund;
2. Matters concerning the Fund performance measurement;
3. Matters needing improvement in connection with management and operation of the Fund;
4. Matters deemed necessary by the chairperson of the Practices Review Board among agenda items to be presented to the Operation Committee;
5. Other matters on which deliberation is requested by the Operation Committee.
(2) The Practices Review Board shall be comprised of the Vice Minister of Health and Welfare as the chairperson, a vice chairperson elected from among the members, and the following persons recommended by the chairperson:
1. Grade III national public officials of the relevant ministries and offices or public officials in general service belonging to the Senior Civil Service Corps who are nominated by the chairperson and ex officio members (excluding the chief executive officer of the Service) each under Article 103 (2);
2. Three persons recommended by employers' organizations to represent employers;
3. Three persons recommended by the federation of labor unions to represent employees;
4. The following persons representing individually insured persons:
(a) Two persons recommended by farmers and fishermen's organizations;
(b) Two persons recommended by organizations related to the self-employed other than farmers and fishermen's organizations;
(c) Two persons recommended by consumer organizations and civic groups;
5. Two persons of knowledge and experience in the National Pension System and in the operations of the National Pension Fund.
(3) If each organization intends to recommend a member of the committee pursuant to paragraphs (2) 2 through 4, the organization shall make such recommendations among the following persons:
1. Persons qualified as a lawyer or certified public accountant;
2. Persons who majored in social welfare, economics, or business administration, etc. and who are currently working on a position of an assistant professor or higher for at least three years in a college or university under the Higher Education Act;
3. Persons who hold a doctorate degree in social welfare, economics, or business administration, etc. and who have worked in a research institute or public institution for three years or more.
(4) The members shall serve a term of office of two years and may serve consecutive terms: Provided, That the tenure of the chairperson and that of a member who is a public official shall be the period during which he/she holds his/her official position.
(5) The relevant departments in charge of the Fund shall submit in advance data necessary for the meetings at the request of the Practices Review Board.
(6) The Practices Review Board shall submit findings from the evaluation of operation of the Fund to the Operation Committee by the end of June of the following year.
(7) Matters necessary for the organization and operation of the Practices Review Board and other matters shall be prescribed by Presidential Decree.

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Article 105 (Guidelines for Operation of National Pension Fund)

(1) The Operation Committee shall formulate guidelines for the operation of the National Pension Fund annually (hereinafter referred to as "Fund Operational Guidelines") concerning the following matters, to maximize the rights and interests of insured persons:
1. The ratio of assets of the Fund to be used for public projects;
2. The order of priority for distribution of the Fund to public projects;
3. Service expenses incurred in promoting the welfare of current and former insured persons and beneficiaries;
4. Loan services expenses incurred in lending money to currently or formerly insured persons for the purpose of raising the Fund;
5. Targets for and methods of public announcement concerning the current status of the management and operation of the Fund under Article 102 (2) through (5).
(2) Necessary matters concerning the Fund Operational Guidelines shall be prescribed by Presidential Decree.

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Article 106 (Fund Receipts and Disbursements)

Matters concerning the procedure for receipts and disbursements in the management and operation of the Fund shall be prescribed by Presidential Decree.

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Article 107 (Plans, etc. of Fund Operation)

(1) The Minister of Health and Welfare shall plan the operation of the Fund each year and obtain the approval of the President following deliberation by the Operation Committee and the State Council.
(2) The Government shall report the plan of Fund operation under paragraph (1) to the National Assembly by the end of October of the year preceding the relevant year.
(3) The Minister of Health and Welfare and the Minister of Strategy and Finance shall submit the details of the operation of the Fund and the details of the use of the Fund deposited in the Management Fund, respectively to the Operation Committee by the end of June of the year following the relevant year.
(4) The chairperson of the Operation Committee shall submit the details of the operation and use of the Fund under paragraph (3) to the National Assembly, following deliberation by the Operation Committee and make it public, as prescribed by Presidential Decree.

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