The government will create a state-run institution to operate the 100 trillion won ($91.2 billion) asset that is currently managed by the Postal Savings and Insurance Bureau, the Finance Ministry said Wednesday.

In a national finance strategy meeting at Cheong Wa Dae, Finance Vice Minister Bang Moon-kyu said the launch of a state managed monitoring body will help lessen the uncertainties in the asset management sector that may lead to increased financial threats amid years of low interest and slow economic growth.

Bang said the Postal Savings and Insurance Bureau’s 40 asset managers are too few in number to handle the massive 100 trillion won asset.

“Launching a separate state body aims at increasing the transparency and professionalism (of the asset managers), similar to the National Pension Service,” Bang said.

The ministry is also mulling measures to raise the NPS’ earning rate with more experienced pension mangers, Bang added.

The finance meeting came amid the Finance Ministry’s push to slash next year’s government budget allocation, slated to begin in June.

The ministry plans to reassess all government projects and subsidy expenditures, and will cut or integrate the lowest 600, or about 10 percent of the total projects.

(joowonc@heraldcorp.com)