▲ National Pension Service
Amid a recent market crash in domestic stocks, the National Pension Service (NPS)—a major player in the local stock market—has reportedly suffered nearly 200 trillion won in losses over a period of about 100 days.
As criticisms have been raised that it failed to serve as a safety valve by absorbing foreign selling pressure during the plunge, the National Pension Service also appears to have been unable to avoid massive losses.
According to financial information provider FnGuide today (October 18), the total stock value of 287 listed companies in which the National Pension Service held a stake of 5% or more as of June 30 and October 15 was estimated at 333 trillion 533 billion won as of October 15.
The valuation of these stocks stood at 515 trillion 929 billion won at the end of June, but 182 trillion 396 billion won (35.3%) evaporated in just three and a half months.
This marks the first time since the fourth quarter of 2024—seven quarters ago—that the National Pension Service's stock valuation has entered negative territory on a quarterly basis, with the loss size reaching a record high.
The National Pension Service recorded a historic gain of 189 trillion won during the period from April 1 to July 6, which includes the second quarter, meaning it has given back all of those gains in just one quarter.
As the stock prices of SK Hynix and Samsung Electronics, which were the top contributors to the massive gains previously, declined, losses of 74 trillion 261 billion won and 56 trillion 871 billion won respectively—totaling 131 trillion 97 billion won—occurred in these stocks.
This accounts to 71.8% of the total losses.
During this period, Samsung Electronics' share price plummeted from 334,000 won to 210,000 won, while SK Hynix dropped sharply from 2,650,000 won to 1,262,000 won.
The National Pension Service held 7.84% and 7.32% stakes in these stocks respectively as of October 15.
Losses occurred in 176 out of the 287 stocks, with SK Square recording a loss of over 10 trillion won (-10 trillion 869 billion won) and Samsung Electro-Mechanics suffering over 7 trillion won (-7 trillion 591 billion won).
On the other hand, SK Innovation expanded its stake (from 6.03% to 7.14%) over the same period, recording a valuation gain of 904.1 billion won.
Its share price rose from 94,900 won to 155,000 won.
S-Oil (710.7 billion won), LG Energy Solution (580.8 billion won), and Hanwha Solutions (434.7 billion won) followed in terms of valuation gains.
While the number of stocks with a stake of 5% or more stood at 270 at the end of the second quarter, it was 274 as of October 15, showing no significant change in the number of stocks.
During this period, newly incorporated stocks with a 5% or greater stake reached 17, including Xi&D (9.31%), PharmaResearch (7.94%), DN Automotive (7.08%), Hanwha Solutions (6.41%), and Korea Zinc (5.48%).
Conversely, stakes in 13 stocks, including LG Display, Global Tax Free, and Hans Biomed, fell below 5% through share sales and other measures.
In addition, stakes were expanded in the order of GS Engineering & Construction (from 7.82% to 12.88%), Hyundai Marine & Fire Insurance (from 9.42% to 12.37%), and Binggrae (from 6.47% to 9.37%), while stakes in Hanwha, Korean Air, and Naver were increased by 1.92 percentage points, 1.9 percentage points, and 1.27 percentage points, respectively.
Meanwhile, stakes in Paradise (from 12.33% to 8.39%) and Samsung Biologics (from 10.27% to 6.56%) were significantly reduced, and stakes in Mirae Asset Securities (from 7.23% to 6.19%) and Samsung Securities (from 13.36% to 12.15%) were also trimmed by more than 1 percentage point each.
The total number of stocks with increased stakes was 84, among which 7 were KOSDAQ stocks including PharmaResearch, RF Materials, and Doosan Tesna.
Stocks with decreased stakes numbered 82, with KOSDAQ companies accounting for 21 of them.
It appears that after purchasing numerous KOSDAQ stocks in the first half of the year due to government policies to revitalize the KOSDAQ market, they sold them off in large quantities during the third quarter.
Stakes were also reduced in materials, parts, and equipment (MPE) companies such as Daejoo Electronic Materials (from 7.67% to 6.27%), which had been considered a beneficiary stock of SpaceX, and semiconductor firm Duksan High Metal (excluded from 5% or more holdings), as well as cosmetics development and manufacturing company Cosmecca Korea (from 12.99% to 10.91%) and biotech firm Olıx (excluded from 5% or more holdings).
※
Copying, redistribution, and unauthorized use in AI training are strictly prohibited.