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Seoul ponders new pension mega-fund

By commingling $2.5 billion of pension monies into one new fund the government hopes to prop up the local stock market.
South Korea's bureaucrats, particularly at the Ministry of Finance and Economy (MoFE), are urging 38 government-related pension funds to chip in a combined W5 trillion ($2.5 billion) into a proposed management entity, in order to get more funds into the local stock and bond markets û and support domestic securities companies. According to fund managers and brokers in Seoul, up to 40% will be slated for domestic equities, probably index funds.The bulk of this would probably come from s…
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