35 pensioners demand action from NPS over coal investments

Members of environmental groups and the plaintiffs who filed a lawsuit for damages against the chairman, the fund director and the auditor of the National Pension Service (NPS) urge the NPS to restrict investments in coal mining and power generation in front of the Seoul Central District Court, Thursday. Yonhap

A group of pensioners filed a lawsuit against the National Pension Service (NPS) chairman and other key executives on Thursday. The 35 subscribers said that the NPS' lack of policies to restrict investments in coal was directly linked to health issues and other problems experienced by the pension subscribers.

It comes as this Thursday marks exactly 1,000 days since the NPS announced its coal phase-out initiative on May 28, 2021, aimed at restricting investments in coal mining and power generation.

According to the plaintiffs, however, no feasible actions or plans for the initiative have been implemented since the announcement.

"The coal investments by the NPS are seen as a barrier to achieving the national goals for carbon neutrality. Citing their health or financial losses, the plaintiffs have sued the NPS' chairman, the fund director and the auditor — key figures in the decision-making process of the fund's operations — demanding compensation of 20.5 million won ($15,415) per each plaintiff," said Kim Hyun-ji, the plaintiffs' legal representative.

Kim is affiliated with Solution For Our Climate.

Coal is identified as a significant contributor to the climate crisis due to its extremely high greenhouse gas emissions. Coal-fired power stations also pose numerous health risks by triggering respiratory conditions and other health-related issues among residents in nearby communities. This is the primary reason three residents living near coal-fired power stations in South Gyeongsang Province have joined the lawsuit, according to the plaintiffs.

Moreover, the continued investment in the coal industry, widely recognized as a leading example of stranded assets, generates financial risks that could potentially lead to fund losses, according to the plaintiffs. They said that the NPS' bond investment in major coal power entities, including Korea Electric Power Corp. and its power generation subsidiaries, have significantly increased following the declaration, more than doubling in the past three years.

Five climate organizations that hosted the press conference along with the plaintiffs urged the NPS to manage pensions in the interest of the public's welfare. They called on the NPS to align with the U.N.'s 2050 carbon neutrality goals and to publicly share a detailed plan for reducing its financial carbon footprint. The NPS was also urged to promptly develop and implement a policy to restrict investments in coal.

In response to The Korea Times' query, the NPS said it had ceased investments in new power plant projects, both domestically and internationally, since the initiative was announced. It also mentioned that it conducted research to establish guidelines and criteria for investing in coal mining and the power generation sector.

"But the final decision on such policy directions falls under the jurisdiction of the fund management committee, overseen by the Ministry of Health and Welfare. Only with their approval can our organization proceed with implementation," an NPS official said.