National Pension Service's Domestic Stock Holdings Exceed Target by 7%p: Rebalancing Expected

The National Pension Service (NPS) has seen the valuation of its holdings in listed companies, where it owns a 5% or greater stake, reach 27.7% of its total assets under management.

As this figure already exceeds the NPS's previously raised domestic stock target allocation of 20.8%, the scale of the rebalancing that the pension fund resumed this month is expected to be significant.

According to an analysis of the NPS's large shareholding disclosures for the second quarter of 2026 by the corporate analysis institute Leaders Index, the NPS held a 5% or greater stake in a total of 267 listed companies.

The valuation of these stakes was recorded at 462.1403 trillion won as of the closing price on July 10.

Even excluding the remaining 900 or so stocks where the NPS holds less than a 5% stake, this amount accounts for 27.7% of the total assets under management, which stand at 1,670.7 trillion won.

This is approximately 7 percentage points higher than the domestic stock target allocation of 20.8%, which the NPS had previously increased significantly from 14.9%.

The valuation of the NPS's holdings in these companies has surged by 257.8% over the past year and a half, compared to 129.161 trillion won in December 2024, when the stock market hit a low point in the aftermath of the emergency martial law declaration.

While the number of companies held increased by 8 from 259, the total valuation grew 3.6-fold.

The sector where the NPS expanded its investment weight the most was IT, electric, and electronics, with the valuation of its holdings in this sector increasing by 632.1% from 39.1063 trillion won to 286.3016 trillion won during the same period.

Consequently, its total investment weight in this sector rose by 31.7 percentage points, from 30.3% to 62.0%.

Samsung Electronics and SK Hynix led this growth.

The NPS's stake in Samsung Electronics rose from 7.3% to 7.9%, and its stake in SK Hynix increased from 7.6% to 8.1%.

The value of these stakes surged by 468.8% for Samsung Electronics and 1,210.1% for SK Hynix.

The combined weight of these two companies in the total valuation more than doubled, rising from 25.3% to 55.5%.

The sector with the second-highest investment weight was holding companies (11.4%).

The valuation of stocks in the holding company sector where the NPS holds a 5% or greater stake increased by 203.2%, from 17.4001 trillion won to 52.7576 trillion won.

In particular, for SK Square, the valuation of the NPS's stake jumped by 1,941.7% from 772.6 billion won to 15.7734 trillion won, driven by an increase in its stake from 7.2% to 8.5% and a sharp rise in the stock price.

The NPS's investment weight in SK Square rose from 0.6% to 3.4%.
※ Please note: This article was translated by AI and may contain errors.