South Korea’s biggest retirement savings fund, the Korean Teachers’ Credit Union (KTCU), is facing pressure to tighten its scrutiny of domestic alternative investments after suffering losses of 5.67 billion won ($4.94 million) in the past two years. 

Data submitted by KTCU to Bae Joon-young, a member of the National Assembly’s Education Committee, shows that KTCU recorded a 4.4 billion won ($3.8 million) loss on its participation in a project to construct Digital Media City Landmark Building, a 133-floor, 640-meter skyscraper in Digital Media City, Seoul, after work was canceled due to conflicts of interest.

KTCU’s investment score in the movie business was not that good, either. It contributed 27.28 billion won to a special asset fund investing in the industry in 2014, only to register a negative return of 4.89%. The credit union lost 1.27 billion won when the contract with the fund expired four years later. 

“As the failure of alternative investment risks has lead to a huge financial loss, KTCU has to strengthen its investment verification system,” Bae emphasized. (Reporting by Jinwon Lee)