NPS to raise domestic equity allocation to 14.9% in 2026
Health and Welfare Minister Jeong Eun-kyeong speaks at the first meeting of the year for the National Pension Service (NPS) fund management committee at Government Complex Seoul, Monday. Yonhap
Korea's state pension fund said Monday it will increase its allocation to domestic equities this year from 14.4 percent to 14.9 percent, citing shifts in market conditions at home and overseas.
The decision was made at a meeting of the National Pension Service (NPS) fund management committee, which was convened to review the fund's overall investment strategy, including its exposure to local stocks, and to discuss measures to cope with volatility in the foreign exchange market.
NPS officials said the committee opted to revise the target portfolio originally set for this year after considering foreign exchange market conditions, as well as the rising burden of securing foreign currency amid the continued expansion of the fund's assets.
Under the revised plan, the target allocation to overseas equities will be reduced from the previously planned 38.9 percent to 37.2 percent, while the allocation to domestic bonds will be increased from 23.7 percent to 24.9 percent.
The NPS said the changes were made after a comprehensive review of their potential impact on fund returns and consistency with its broader investment strategy.
"It is time for the NPS to take a close look at its portfolio, as the fund has delivered strong performance for three consecutive years since 2023, resulting in a significant increase in its size and its influence on financial markets," Health and Welfare Minister Jeong Eun-kyeong said.
She added that the NPS will continue to manage the fund in a manner that faithfully serves its purpose of securing retirement income for the public, while seeking to improve returns and carefully manage its impact on the market.
The Korea Composite Stock Price Index surged 76 percent last year to close at 4,214.17 points.
The benchmark index has continued to post solid gains this year and has remained above the 5,000-point level since Thursday last week, though it has yet to finish a session above the threshold.