Pension Fund Raises Domestic Equity Target to 14.9%, Pauses Automatic Sell-offs
Creatrip Team
a month ago
The National Pension Service (NPS) raised its target allocation to domestic stocks from 14.4% to 14.9% and will temporarily relax automatic rebalancing sell rules. The move aims to avoid large mechanical sell-offs during a sharp local market rally (KOSPI, KOSDAQ) and to reduce pressure on the won-dollar exchange rate by lowering planned overseas equity purchases. Officials said the decision reflects recent rapid changes in the domestic equity and foreign exchange markets and improved NPS returns that eased worries about long-term fund depletion. Market participants say the change should ease supply-demand strains, but some warn that increasing exposure to domestically concentrated sectors (like semiconductors) and frequent allocation shifts could undermine long-term stability and the fund’s independence.
