투자전문회사 업무집행사원의 권한남용 통제

양기진(Gi-Jin Yang) 한국비교사법학회 2007 比較私法 Vol.14 No.3

  This paper is focused on the matter of controlling authority abuse by managing partners(‘Ummu-Giphaeng-Sawon’) of Korean private equity fund(‘Tu-Cha-Cheon-Mun-Hoe-Sa’).<BR>  Korean private equity fund should be only Korean limited partnership(‘Hap-Ja-Hoe-Sa’) under ‘Act on Business of Operating Indirect Investment and Assets’(hereinafter as Indirect Investment Act).<BR>  Managing partners of Korean private equity funds have a lot of discretion in operating funds. Therefore, we need to build various mechanism for controlling managing partners. In relation to this issue, two ways are possible.<BR>  First, it should be clear that the duty of attention of managing partners may be allowed to be changed in articles of association and so on. Managing partners will have incentive to reveal the clashing problems to other partners in advance in order to get their approval and exemption. However, preliminary and comprehensive exemption must be allowed. In most cases, the managing partner is not a natural person but a company. Therefore, duty of attention of managing partner’s executives shall be dealt with together.<BR>  Second, Korean private equity funds need more elaborate contract clauses which limit opportunistic behaviors of managing partners. As managing partners have much discretion on fund management, it is natural that the other partners who have invested bid fortune worry about and prepared against managing partners’ discretion abusing.

직접금융의 활성화를 위한 중소기업전문주식시장(KONEX)의 도입 논의

양기진 ( Gi Jin Yang ) 한국상사판례학회 2012 상사판례연구 Vol.25 No.3

This paper aims to review the characteristics of finance in Small-and-Medium enterprises (hereinafter, SMEs), SMEs` needs for direct financing and KONEX (KOrea New EXchange) which is now being considered to be established under Korean Exchange. SMEs, especially innoventures are the growth engines of our economy. However, despite of Korean SMEs` necessity for financing, direct financing such as financing through issuing stocks or bonds consists only of around 1% of external funds. Not only Korean SMEs themselves but also venture capital funds also need an equity market to circulate their funds. The main reason why the SMEs suffer from lack of fund is information asymmetry, due to which their investors feel difficulty in managing SMEs` credit risk. In order to facilitate direct financing of venture start-ups and SMEs through the capital market. the Korean Financial Services Commission (hereinafter, the FSC) is seeking to set up a SME funding market tentatively named KONEX which benchmarks the British AIM and Japanese Tokyo Pro Market, thereby financing SMEs and their venture capitals, thereby creating a virtuous cycle. For successful operation of KONEX, related systems should be modified and the Korean nominated adviser will be the key point among others. In KONEX, nominated advisers can be expected to do similar roles of major creditor banks in relationship banking, thereby helping to list the KONEX and to advise disclosure as well as distributing information appropriately in market full of information asymmetry. For the success of nominated adviser system, above all things, the FSC should give appropriate incentives to nominated advisers and it should help nominated advisers to play their role actively in the market. To induce them to participate in taking over roles of nominated advisers, safeguards for acts of nominated advisers should be established about their powers and liabilities in advance to lessen the legal uncertainty, which includes duty of keeping independence from the listed companies and not staying in interest conflict with them.

고빈도매매의 규제동향 및 규제방안

양기진(Yang, Gi Jin) 한국증권법학회 2013 증권법연구 Vol.14 No.1

세계적으로 대체거래시설(ATS)의 설립 허용 추세와 함께 거래소 및 ATS간의 투자자 유치 경쟁이 심화되고 있다. 또한 각국 거래소들의 전자적 거래체결 시스템이 완비되면서 알고리즘에 의한 고빈도매매가 근래에 세계적으로 활성화되었다. 한편 알고리즘에 의한 고빈도매매자를 유치하고자 대부분의 해외 거래소들은 투자자들이 브로커의 접속아이디로 직접 거래소시스템에 접속할 수 있도록 하는 직접시장접속방식(DMA)을 허용하고 있고, 나아가 동일장소서버지원서비스(co-location service) 또는 제3자서버공간 임대서비스(proximity service)를 제공하는 추세이다. 알고리즘에 의거한 DMA의 허용은 세계적인 추세이며 이를 막을 특별한 이유도 없다고 본다. 다만 DMA 허용에 따른 투자자나 브로커의 위험관리 및 시장에 미칠 파급효과 제어에 관한 조치는 반드시 필요하다. 이러한 관점에서 각국은 DMA 중브로커의 시스템에서 주문의 유효성을 검증받지 않는 순수DMA 내지 보증형접속은 그 잠재적 위험성 때문에 그 이용을 제한하는 추세이며, 우리나라 감독당국 및 한국거래소 역시 순수DMA 방식을 허용하지 않고 있다. 특히 우리나라는 브로커에게 투자자의 주문이 접수된 순서에 따라서 브로커가 거래소시스템에 호가를 입력하도록 하고 있다. 그러므로 투자자가 브로커의 거래소접속 아이디로 브로커의 주문체결시스템(Order Management System: OMS)을 경유하여 거래소시스템에 직접 접속하도록 하는 협의의 DMA를 행할 실익이 없어서 우리나라의 시장운영규제는 상대적으로 매우 엄격하다고 할 수 있다. 따라서 우리 거래소의 경쟁력을 위하여 투자자 주문의 유효성을 사전검증하는 협의의 DMA가 우리나라에서 잘 기능할 수 있도록 규제를 풀어 주고 동일장소서버지원서비스 등을 허용할 필요가 있다. 다만, 협의의 DMA를 허용하는 경우에도 해당 브로커나 투자자가 이용하는 알고리즘의 유효성 검증 및 시세조종에의 악용 여부의 감시, 이를 위한 거래소 등 시장감독기구와 금융감독당국의 권한 강화 및 양자간의 긴밀한 협조체제 구축은 향후의 중요한 과제로 남는다. Nowadays the competitions to invite investors are more intensifying among the global exchanges and/or alternative trading systems (ATSs). The more equipped the electronic trading systems of the global exchange are, the more invigorated the high frequency trading (HFT) has been recently through the world. On the other hand, unlike the past, most of global exchanges allow investors to directly access their trading systems without the brokers’ intervention by using the broker’s market participation ID, which means DMA. Moreover, many exchanges tend to provide co-location service and/or proximity service to the investors. As algorithm trading has been common, DMA has also been a worldwide trend; there is little reason to ban DMA, setting aside taking measures to control the risks on brokers and the related market. However, many countries are in the process of imposing prohibition on pure DMA (sponsored access) which means that the investors are not forced to make their orders validated in advance through the brokers’ system. Korea also bans pure DMA. However, this major trend doesn’t necessarily mean that the other type of DMA (traditional DMA/ narrow DMA) should also be forbidden. The Korea Exchange compels the brokers to input the bids and asks into the Exchange system only in the order in which they received. Therefore, there is no use exercising traditional DMA for the investors; the Korean Exchange’s market operating regulation is too strict to attract the global investors. Accordingly, Korea needs to lift the strict DMA regulations and to allow the brokers to provide the co-location service to investors. Alongside the future market invigoration allowing the traditional DMA, there remain some important tasks such as building effective system of validating the algorithms, monitoring the market price manipulation, and, to pursue effectively these goals, building closer cooperation between the Exchange and the financial supervisory authority.

ELS 헤지활동에 관한 판결 동향과 투자자보호 쟁점

양기진(Yang, Gi Jin) 한국증권법학회 2016 증권법연구 Vol.17 No.2

ELS의 경우 델타값의 변동성에 따라 기초자산을 매수·매도하는 헤지(델타헤지)가 필요하며 이에 따라 기초자산을 사고판다는 특수성을 갖는다. 한편 금융투자업자는 자본시장법상 금융투자업자에게 부과되는 의무, 즉 신의성실의무, 투자자이익 우선 할 의무, 이해상충회피·관리의무 등을 진다. 따라서 자본시장법상 금융투자업자가[자신을 위하여] 재무위험을 관리할 의무와 신의성실의무 등이 충돌하여 보일 수 있으며 해당 금융투자업자의 시세조종 의도를 판단할 때 이러한 의무들을 함께 고려하지 않을 수 없다. ELS와 같이 구조화된 복잡한 상품이 점점 더 출시되면서 2009년 시행된 자본시장법상 금융투자업자의 신의성실의무, 투자자이익 우선의무, 이해상충회피·관리의무가 문제의 해결에 더욱 빛을 발하게 될 것으로 생각된다. ELS 등 구조화된 상품에 관련된 시세조종 사건에서 본질은 헤지행위가 아니라 금융투자업자로서 지는 기본적인 의무, 즉 이들 금융투자업자들이 자본시장법상 부여된 자신들의 의무를 이행하려는 노력을 적극적으로 하였는지이다. 이해상충 상황에서 합리적으로 회피해 나갈 수 있었음에도 투자자이익 우선의무를 저버린 것이라면 이 점에 관하여 적어도 시세조종에 관한 중과실이 있었던 것이 아닌지 상당한 의심을 할 수 있다. ELS has unique characteristics that it needs (delta) hedge where a hedging entity should buy or sell the underlying assets depending on the change of delta values. On the other hand, financial investment business entities (hereinafter, FIBE) have legal duty such as duty of good faith, duty not to pursue its own self-interest thereby undermining the investors’ interests without justifiable reason (§ 37) and duty to control interest conflicts (§44) under the Korean Capital Market Act. When a FIBE is an ELS seller or it is a swap contract with an ELS seller (back-to-back hedge), it has a legal duty to manage his own financial risk and it can be entitled to do dealing for its own hedging purpose. The same reasoning applies to a FIBE’s other duties; as it has a legal duty of good faith, etc. it should abide by the exactly same duties even when it is buying or selling underlying assets for hedging. Therefore, a court cannot but consider legal duties of a FIBE when it inquires into the material issue of existence of a FIBE’s manipulative intent in the process of disposing in bulk. In market manipulation cases related to structured products like ELS, the essence is not a hedge but a basic matter, that is, whether and how much a FIBE in question did its effort to observe its own legal duties under Korean Capital Market Act. If a FIBE is found to have neglected its duty of not pursuing its own self-interest over investors’ interests without justifiable reason under interests conflicting situation, it will lead to considerable doubt that there might have been an manipulative intent which includes a gross negligence about that its own self-interest pursuing acts. Claiming that a FIBE did selling in bulk for hedge purpose may not justify its position when it did’t reasonable measures to avoid interests conflicts with investors.

수익형 부동산 분양의 자본시장법상 규제 모색

양기진(Yang, Gi Jin) 한국증권법학회 2016 증권법연구 Vol.17 No.1

저금리 기조가 이어지면서 고수익을 장담하고 나아가 확정수익 지급을 약정하면서 투자금을 모집하는 업체들이 급증하고 있다. 수익형 부동산 분양광고 실태를 살펴볼 경우 근래의 추세는 단연 임대수익이다. 장래의 임대수익 가능성이 수분양자들의 주관심사가 되면서 시행사/분양회사는 미리섭외한 임대관리회사를 분양단계에서 전면에 등장시키고 있다. 수익형 부동산의 투자자들은 시행사의 객실 상품을 포함하여 임대관리회사의 운영노하우에 대하여 큰 관심을 가지고 있을 것이나 아쉽게도 이들 회사에 관하여 분양단계에서 제공되는 정보가 미흡할 뿐만 아니라 한쪽으로 편중되어 있다. 또한 수익형 부동산 분양 과정에서 과연 투자자들이 판촉인들로부터 투자 관련 제반 위험요인 및 위험정도에 관한 적절한 설명을 듣고 위험을 감수할 의사로 투자하였는지 의문이다. 수익을 기대한 수분양자들에게 수익형 부동산의 분양 및 임대관리를 묶은 상품은 자본시장법상 투자계약증권으로 규율이 가능할 것으로 보인다. 미국 법원들도 긍정하듯이, 우리 법상 투자계약증권성 여부의 판단시에도 실체-개별 계약들이 아닌 투자스킴 전체-를 고려할 필요가 있다. 우리나라 수익형 부동산 분양시에 분양을 하는 주체(시행사)가 별개의 임대관리회사를 세우더라도 전체 투자스킴을 중시하여 하나의 투자계약증권으로 규율할 수 있는 것이다. 그러나 투자계약증권의 추상적 문구상 구체적 사례에 적용하기 위하여는 공동기업요건 등 문구의 해석 내지 판단이 필요할 수 있다. 이 글에서는 미국의 예를 소개하면서 우리 법상 투자계약증권의 요소를 검토하였으나 우리 법체계와 시장의 실정에 적합한 투자계약증권의 구체적 요소가 무엇일지 연구가 지속될 필요가 있다. Under the recent situation of continuing low interest, lots of condo-hotel builders have sold their units to many investors by showing prosperous high profits and sometimes by promising to pay fixed amount of profits during some period. In some cases, the builders give options of selling back the condo-hotel units to the buyers to promote the unit selling. It is definitely future rental profits that are emphasized in the sales catalogues for rental real estates. For example, rental condo-hotel builders are now aggressively touting rental management companies at the very first advertising stage. Hence, the potential investors considering of buying rental condo-hotels have plenty of information needs not only for the unit products but also for the rental management companies. What is the most serious problem at sale stage is that this important information tends to be provided both insufficiently and biasedly by the selling party. How many Korean condo-hotel unit buyers have achieved enough/correct information in the marketing process necessary for knowledge-based investment decision? Rental real estates that have been/are sold to buyers who anticipate rental profits may be regulated as investment contract securities (hereinafter, ICS) under the current Korean Capital Market Act. American courts have affirmed some profitable real estates as securities since SEC v. W. J. Howey Co. decision by Supreme Court in 1946. In the decision of whether a sale of condo-hotel is ICS under Korean Capital Market Act, the whole transaction or scheme should be considered without being misled by the appearance such as multiple contracts, separate rental manager, etc. However, due to ambiguity of ICS definition under Korean Capital Market Act, requirements exist for the explanation/judgement of some legal terms like common enterprise. Therefore, with the Korean financial supervisory authority’s guidance and regulation, academical researches should support to find out analysis of ICS that are fit for Korean law systems and capital market.

현선연계 시세조종행위에서 시세조종의도성의 판단 - 외국 사례를 중심으로 -

양기진 ( Yang Gi Jin ) 한국금융소비자학회 2016 금융소비자연구 Vol.6 No.1

<div style="display:none">fiogf49gjkf0d</div><div style="display:none">fiogf49gjkf0d</div><div style="display:none">fiogf49gjkf0d</div><div style="display:none">fiogf49gjkf0d</div><div style="display:none">fiogf49gjkf0d</div><div style="display:none">fiogf49gjkf0d</div><div style="display:none">fiogf49gjkf0d</div>대표적인 현선연계 시세조종 사건인 ELS 기초자산 대량매도 사건과 관련하여 현재까지 손해배상 사건 일부가 대법원에서 처리되었으나 아직 RBS 시세조종 관련 증권집단소송에 기한 손해배상청구사건 등 미제사건들이 남아있으며 향후에도 다양한 현선연계 시세조종이 다퉈질 소 지가 적지 않다. 현재까지 선고된 5건 판결과 관련하여 `헤지행위`라는 외피를 쓴 시세조종인지에 관하여 대법원의 판결이 엇갈리고 있다. 따라서 현선연계 시세조종 혐의행위에 대하여 시세조종 의도의 판단 기준이 정립될 필요가 요청된다. 헤지행위가 기초자산의 대량 매매행위의 양태로 나타날 경우 해당 행위에 대한 시세조종 의도 여부의 판단은 결국 헤지행위의 구체적인 발현행태 및 해당행위를 한 금융회사의 주의의무 이행 여부에 관한 판단과 불가피하게 연관된 것이 될 것이다. 미국의 경우 ELS 기초자산의 대량매도를 둘러싼 분쟁을 찾아보기 어려우나 트레이더의 헤지거래 항변을 다룬 Masri 판결, 그리고 종가조작행위에 관하여 시세조종 여부를 판단하는 기준을 제시한 Amaranth 판결 등이 우리법에 시사점을 줄 수 있다. 또한 홍콩 심판원의 결정은 연계시 세조종이 문제된 몇몇 사건에 관하여 위법 여부를 판단한 판결 또는 피징계자인 트레이더의 주의의무 위반 여부를 판단한 사례로 기울여야 할 주의의무의 정도에 관하여 우리법 해석상 참고가치가 있다. 이 글에서는 향후 현선연계 시세조종 사건 실무에 도움이 되기를 기원하며 이들 판결 및 결정문 소개를 통하여 외국 법원의 판단기준을 정리, 분석하였다. Recently, there are some conflicting decisions of Korean Supreme Court about Cross-market manipulation. One of the examples is disputes about price manipulative acts of ELS (Equity-linked securities) underlying assets. They shows different attitudes about hedging acts, so called delta hedging activities until far; some rules that underlying asset tradings are legitimate because they were done for hedging purpose while the other rulings judge that even hedging acts cannot be manipulative acts that artificially affects market prices. Therefore we need to find standards to decide hedging activities can be manipulative acts and if so what kind of components they need. Although ELS related disputes are not seen in U.S.A., there are some court rulings such as Masri and Amaranth decisions which can give important implications; these decisions show strict attitudes of American courts about cross market manipulation. In addition, Hong Kong Securities and Futures Appeals Tribunal (SFAT) also implies a level of duty of care needed for hedge trader on the suspicion of cross market manipulation. This paper introduces and analyzes the above court rulings and SFAT decision hoping to give helps our standard of manipulative intent in cross market cases.

자산유동화법의 개정방향 - 제13조(자산양도요건)의 재검토 -

양기진 ( Yang Gi Jin ),황상철 ( Sang-cheol Hwang ) 홍익대학교 법학연구소 2008 홍익법학 Vol.9 No.1

기업은 자산유동화 기법으로 자금조달을 하면서 여러 가지 편익을 얻는데, 이러한 자금조달의 이점은 자산 양도인으로부터 자산 양수인에게의 자산양도가 원 자산보유자의 도산위험으로부터의 절연될 것을 근본적인 전제로 한다. 어느 경우에 원 자산보유자의 도산위험으로부터의 절연이라는 전제가 충족되는지에 관련하여, 자산유동화에 관한 법률 제13조는 유동화에서 자산의 양도로 `보는` 요건을 규정하고 있다. 그런데 현행 자산유동화에 관한 법률 제13조가 형식적 요건을 강제하는 한편 동조 각호의 단서조항의 모호함으로 인하여, 이제까지 우리나라의 자산유동화는 도산의 문제와 정합되지 않는 방식으로 운영되어왔다고 볼 수 있다. 제13조 역시 지금처럼 자산통제권의 이전 여부에 주목하는 것보다는 유동화에 기한 이익과 위험이 이전되었는지의 기능주의적 접근방식으로 이행하는 것이 바람직할 것이다. 나아가 최종적인 파산위험과의 절연 여부는 유동화거래구조 전반을 놓고 원 자산보유자에 대한 이해관계인들의 합리적인 이해관계를 감안하여 판단하는 것이 좋을 것이다. Companies get several benefits from financing with Asset-Backed Securitization tools, the merits of which are fundamentally based on the isolation of transferred assets from the bankruptcy risk of the original asset holder(i.e. asset transferor). On the matter of what an asset transfer is, the Korean Asset-Backed Securitization Act(hereinafter, ABS Act) provides several conditions which must be met to be `regarded` as an asset transfer under this Act. Nevertheless, Art. 13 of the current ABS Act has controversial issues: This article compels several formal requisites to be approved as an asset transfer according to the ABS Act. Besides that, it has ambiguous provisos which don`t seem to harmonize with the point of isolation from bankruptcy risk of the asset transferor. Requisites of Art. 13 don`t seem to be consistent with Korean Debtor Rehabilitation and Bankruptcy Act. Therefore, I suggest that the current Art. 13 of the ABS Act be revised to be focused on transfer of substantive risks and benefits(i.e. a functional approach rather than a control transfer approach) in the aspect of the original asset holder`s interested parties. Moreover, the final decision in the bankruptcy procedure of the original asset holder should stand on the basis of the whole asset-backed securitization structure instead of the trade of asset transfer itself.

상호저축은행의 부동산 프로젝트 파이낸싱에 대한 소고

양기진(Gi-Jin Yang) 한국기업법학회 2011 企業法硏究 Vol.25 No.4

The number of real estate project financing (hereinafter, real estate PF) by Korean mutual savings banks (hereinafter, MS banks) has increased sharply since the mid 2000s. However, the considerable numbers of these real estate PFs by MS banks do not belong to the original concept of PF that is fundamentally long term and non-recourse financing. In numerous cases, MS banks have lent to developers in comparatively short-term basis in the early stage of construction, depending on the payment guarantees offered by the constructors. Such a loan is called as a bridge loan which is expected to exist until the offer of main loan is made. This paper analyzes why most MS banks joined herd behavior phenomenon in real estate PF despite of its high risk. Analysis shows complex reasons such as the concentrated ownership structure of MS banks, insufficient stable profit source, high debt ratio and high cash retention rate, difficulty of monitoring by minority shareholders in non-public MS banks, lack of monitoring incentive of deposit creditors, and so on. Based on the aforementioned analysis, some policies are suggested as follows: First, MS banks should develop their assessing ability to estimate the business value of potential borrowers’ projects. Moreover, they must lower their high debt ratio to heighten their franchise value. They also need to resort to adequate regulation to control the entry of competitors. To prevent the preference of risky asset by controlling shareholders, MS banks had better offer their stocks to the public. Lastly, the supervising authority must handle real estate recession in a conservative and anticipative manner.

금융위기 이래 금융감독 개편 추세와 시사점 - 영국형 감독체계의 한국 적합성 여부-

양기진 ( Yang Gi-jin ) 한국상사판례학회 2018 상사판례연구 Vol.31 No.3

금융위기 이후 거시건전성 강화 및 금융소비자 보호 필요성을 이유로 그간 한국에서 감독체계 개편 목소리가 적지 않았다. 개편 목소리 중 일부는 영국과 호주의 감독체계를 본딴 감독체계의 도입을 강하게 주장하며 국회에서도 관련법 개정을 위한 의안이 수차례 발의된 바 있다. 금융위기 이후 금융시스템 안정성 관점에서의 거시건전성 감독체계 정비와 함께 금융소비자 보호 강화가 중요 이슈로 거론되고 있는데, 한국에서의 금융감독체계 개편을 둘러싼 논의에는 특히 후자- 즉 금융소비자 보호강화에 관한 사항이 뜨거운 감자가 되어 왔다. 이에 한국에서는 현행 감독체계(통합형)을 기능중심형 감독체계, 소위 쌍봉형(twin peaks) 감독체계로 개편하자는 논의가 지속되어 왔다. 이 글에서는 금융위기 이후 주요국의 감독체계 개편 상황을 살펴보았는데 그 결과 금융위기 이래 국가마다 거시건전성 감독의 중요성이 매우 강조되고 있음에도 불구하고 특정한 감독체계로의 개편 추세가 존재한다고 하기 어렵다. 특정한 감독체계가 거시건전성 감독에 최적이라고 하기 어려우며 심지어 감독체계를 개편한 이후의 영국에서도 금융소비자 보호실패 사례가 나타난다. 이상을 감안하여 이제껏 한국의 감독체계에 대하여 각계에서 제기된 여러지적- 정치적 독립성의 취약, 전문성 보완 등-을 착실하게 보완하고 친금융소비자적으로 감독문화 개선에 힘쓰는 등 현행 체계를 보완, 내실화하는 것이 중요하다. Since the financial crisis, there has been considerable arguments in Korea for the reorganization of the current Korean financial supervisory system, due to the need to strengthen macro-prudential supervision and financial consumer protection. Some of the voices strongly advocated the introduction of a supervisory system based on the British and Australian supervisory system, so-called the twin peak system or function-based supervisory system; the Korean National Assembly has made a number of proposals for revision of relevant laws. During the current post-crisis period, the reform of the macro-prudential supervision system and the strengthening of financial consumer protection have been discussed as important issues. In the discussion on the restructuring of the financial supervision system in Korea, especially the latter has become a hot potato. In Korea, there has been a debate about the reorganization of the current system (integration type) into a function-based one (twin peaks system). This paper examines the restructure of the supervisory systems of major countries into function-based supervisory system since the financial crisis. As a result, it is hard to say that there is a tendency of reorganization into specific supervisory system despite some emphasis on macro-prudential supervision since the financial crisis. It is hard to say that a specific supervisory system is optimal for macro-prudential supervision of which purpose is financial stability. Furthermore, even in the UK after the reorganization of its supervisory system, financial consumer protection failures still continue to emerge. In light of the above, Korea needs to complement its current system by supplementing its weakest point of little political independence and the more, which is important for the success of Korean financial supervision.

국민연금기금의 지속가능성 모색

양기진 ( Gi Jin Yang ) 건국대학교 법학연구소 2014 一鑑法學 Vol.0 No.27

This paper examines the present operating conditions of the Korean National Pension together with its problems and related improvement plans focusing on the financial sustainability of the Pension fund. First, the National Pension needs to be provided with its long-term financial purpose in operating the Pension fund. The current trend of low fertility and aging society would expectedly cause exhaustion of the Pension fund. Therefore, in addition to adjusting a formula of Pension provision, other solutions seeking financial sustainability would be the increase of comparatively low-level pension contribution and the input of automatic modifying coefficient into the formula. Moreover, the present governance over the Pension fund operation such as National Pension Fund Operation Committee, etc. should be revised to reinforce representativeness and independence as well as professionalism and responsibility in operating the fund. The party who has the biggest interest over the Pension fund would be no other than both the present insured persons and future taxpayers, so the Korean National Assembly should be involved in making the fund operating policy and supervising the fund operation with responsibility. Furthermore, the concept of pension liability should be defined and introduced in the balance sheet of the Pension fund with a view to enhance people`s right to know and to arrange the foundation of discussing the Pension fund`s financial sustainability. About monitoring the Pension fund operation, the National Assembly should play an important role in a way of indicating the members of outer evaluating organization in pursuit of responsibility and professionalism. Besides, the National Pension should narrow blind area arising from not receiving pension in accordance with its original aim of reducing old-age poverty. It also should devise various institutional methods to induce qualified voluntarily insured persons to join the Pension on basis of stronger investigation of grasping incomes. Finally, the operation of the Pension should improve independence, clarity and responsibility of the Pension fund, leading to strengthen national trust.