South Korea’s National Pension Service Raises 2026 Domestic Stock Target to 20.8% From 14.9%

South Korea’s National Pension Service raised its target allocation to domestic equities for 2026 to 20.8%.

Yonhap News reported on May 28 that the National Pension Service’s fund management committee approved a mid-term asset allocation plan for 2027 to 2031 at its fifth meeting of the year.

The pension fund’s original target allocation to domestic stocks for 2026 was 14.4%. That figure was included in the 2026 fund management plan approved by the committee in May 2025.

As the Kospi extended its sharp rally, the domestic equity target also increased. At a January meeting, the committee raised the 2026 target to 14.9%, up 0.5 percentage point from the previous level.

The Kospi continued to climb, and the National Pension Service’s actual allocation to domestic equities had already reached 24.5% as of the end of February 2026. Reflecting that trend, the committee decided to raise the 2026 target again to 20.8%.

The committee said it considered both the possibility of structural changes in the domestic stock market and the rise in the fund’s actual holdings of local shares. It said the higher target would help improve long-term returns and stability while reducing potential market disruption during rebalancing.