South Korea’s main pension fund took a 182 trillion won hit after a decline in stakes of equities including Samsung Electronics Co. and SK Hynix Inc.
The estimated value of the National Pension Service stakes of 5% or more in 287 listed companies fell to 333.53 trillion won as of Oct. 15 from 515.93 trillion won at the end of June, according to financial data provider FnGuide. It was the first quarterly decline since the fourth quarter of 2024, based on NPS’s past performance, and marks a dramatic reversal for a fund that posted record-breaking returns in the first half.
The reversal underscores the vulnerability of one of the world’s largest pension funds to swings in its home market, where its enormous holdings in chipmakers Samsung Electronics and SK Hynix leave it particularly exposed to the boom-and-bust cycle in technology stocks.
The decline contrasts sharply with NPS’s performance in the first half, when it reported a 27.2% return, its best performance for the period since at least 2022. The NPS had 1,866 trillion won under management at of the end of June.
The fund raised its year-end target allocation to Korean equities in May while lowering its target exposure to foreign equities, increasing its planned exposure to a market that has been one of the world’s best performers in the first half.