National Pension Service’s Domestic Stock Holdings Lose $131.8 Billion as Samsung, SK Hynix Slide
Summary
- The National Pension Service said the market value of its equity stakes in domestically listed companies fell by 182.4 trillion won, to 333.53 trillion won from 515.93 trillion won at the end of June.
- It said Samsung Electronics and SK Hynix alone accounted for 72% of the total decline, with the value of those holdings falling by about 56.9 trillion won and 74.2 trillion won, respectively.
- The National Pension Service said the latest decline is not a realized loss, even as it raised its year-end target allocation to domestic stocks and lowered its overseas equity weighting.
Forecast Trend Report by Period
A selloff in South Korean equities led by chipmakers erased about $131.8 billion from the market value of the National Pension Service’s stakes in major listed companies.
Bloomberg reported on October 19, citing data compiled by FnGuide, that the value of the National Pension Service’s holdings of at least 5% in 287 domestically listed companies stood at 333.53 trillion won as of October 15, down from 515.93 trillion won at the end of June. It was the first quarterly decline in the value of those holdings since the fourth quarter of 2024.
Most of the drop was concentrated in Samsung Electronics and SK Hynix. The value of the pension fund’s SK Hynix stake fell by about 74.2 trillion won, while its Samsung Electronics holding lost about 56.9 trillion won. Together, the two stocks accounted for about 72% of the total decline.
The National Pension Service posted a 27.2% return in the first half, helped by a rally in South Korean equities, marking one of its strongest performances on record. Assets under management stood at 1,866 trillion won at the end of June. Since then, concerns about the durability of gains in artificial intelligence-related shares have fueled broader market volatility.
The Kospi index closed at a record 9,114.55 on June 22 and then fell about 39% by October 15. Over the same period, the National Pension Service’s stake in SK Hynix declined to 7.32% from 7.50%, while its holding in Samsung Electronics remained unchanged at 7.84%. The pension fund raised its year-end target allocation to domestic equities in May and lowered its target weighting for overseas stocks.
The market slump has also reignited a political debate over the National Pension Service’s role in stabilizing equities. The People Power Party criticized the fund for suspending rebalancing earlier this year, saying that left it with less room to buy more during the downturn. Still, the decline reflects changes in the market value of the fund’s major holdings and does not amount to realized losses across its overall portfolio.
