Korea's National Pension Service (NPS) faces urgent pressure to rebalance its asset allocation: As of June 23, the total market value of listed stocks in which NPS holds at least a 5% stake reached 495.338 trillion won, more than double the 245.1908 trillion won at the end of last year. According to FnGuide, the Korea Composite Stock Price Index (KOSPI) has surged 116% this year, and industry estimates put NPS's domestic stock holdings at nearly 30%.
Total market value of NPS holdings reaches 495.338 trillion won, more than double from year-end
According to FnGuide data, as of June 23, 2026, the market value of NPS holdings reached 495.338 trillion won, more than double the 245.1908 trillion won at the end of last year. The rise comes against the backdrop of KOSPI surging 116% this year, driving a sharp increase in the market value of NPS-held stocks. Industry estimates now place NPS's domestic stock holdings at nearly 30%, far exceeding normal target asset allocation levels.
Rebalancing deferral plan ends in July; industry expects NPS to adopt phased selling strategy
NPS's asset allocation rebalancing deferral plan expires in July. Market experts expect NPS to adopt a phased selling strategy rather than a one-time liquidation. Hong Jun-wook, head of Prism Investment Advisory, said: "Even if NPS sells domestic stocks, it will do so when the market is strong and liquidity is ample. The first half of this year was a good time to sell, but in the current volatile market environment, large-scale selling is not easy."
Nam Jae-woo, senior researcher at the Korea Capital Market Institute, said that to reduce market impact, "it is crucial that NPS's transactions are not disclosed to the market." The basic strategy is to sell as discreetly as possible, whether managed directly or outsourced. Noh Hyun-seung, chairman of the Korea Securities Association, pointed out that a large influx of funds into the market in the form of supply not only causes supply-demand imbalance but may also weaken investor confidence. NPS must find an appropriate selling level.
Researcher Nam Jae-woo also noted that the default risk factors in NPS fund management have increased significantly and questioned whether the current risk is within the maximum allowable drawdown or tolerable risk limits.
NPS publicly recruits next CIO; Seo Won-joo continues in role after term ends
NPS is publicly recruiting the next Chief Investment Officer (CIO). Current CIO Seo Won-joo's term ended at the end of last year, but he continues to perform duties. An industry insider said: "Normally, regardless of who takes over, management follows established operating principles, but those principles have now been broken. Due to the significantly increased burden, it is difficult for both the current and new CIO to respond actively."
Frequently Asked Questions
Why did the market value of Korea's National Pension Service stock holdings double in six months?
According to FnGuide data, as of June 23, 2026, the market value of NPS holdings reached 495.338 trillion won, doubling from 245.1908 trillion won at the end of last year. The main reason is the 116% surge in KOSPI this year, which drove a sharp increase in the market value of NPS-held stocks. Industry estimates put domestic stock holdings at nearly 30%.
When does the NPS rebalancing deferral plan expire, and how is the industry expected to respond?
NPS's asset allocation rebalancing deferral plan ends in July 2026. The industry expects NPS to adopt a phased selling strategy. Researcher Nam Jae-woo of the Korea Capital Market Institute pointed out that the basic strategy is to sell without disclosing to the market as much as possible, to reduce the impact on supply-demand balance and investor confidence.
What is the current leadership situation at NPS?
NPS is publicly recruiting the next CIO. Current CIO Seo Won-joo's term ended at the end of last year, but he continues in the role. Industry insiders note that with the significantly increased rebalancing burden and established operating principles broken, both the current and new CIO face high operational difficulty.
