South Korea’s National Pension Posts Record Return, Gains 107% on Domestic Stocks in First Half

Total return stood at 27.22% at the end of June

Fund value may have fallen after Kospi selloff

South Korea’s National Pension Service posted a preliminary investment return of 27.22% in the first half of 2026, the highest first-half performance on record.

The gain exceeded the fund’s previous annual high of 18.82%, set in 2025, in just six months. The fund’s asset value may since have declined, however, after a steep correction in the Kospi following the end of June.

The National Pension Service’s investment management division announced the preliminary figure on Aug. 28. Domestic stocks drove the performance, returning 107.37% in the first half as gains in semiconductor shares fueled by expanding artificial intelligence investment lifted the market. Overseas stocks returned 17.81%, supported by strength in technology shares.

The fund’s assets were valued at 1,865 trillion won ($1.35 trillion) at the end of June, up 407 trillion won ($295 billion) from 1,458 trillion won ($1.06 trillion) at the end of 2025. The value of its domestic equity holdings more than doubled to 543 trillion won ($393 billion) from 263 trillion won ($190 billion), raising their share of total assets to 29.1%. Overseas equity holdings were valued at 661 trillion won ($479 billion).

Domestic bonds posted a return of negative 3% as higher market interest rates pushed bond prices lower. Overseas bonds returned 9.22%, helped in part by foreign-exchange translation effects from a weaker won. Alternative investments returned 9.6%.

Market conditions shifted after the end of June. The Kospi fell about 18.5% to 6,912.37 on Aug. 27 from 8,476.48 on June 30. With domestic stocks accounting for 29.1% of the National Pension Service’s assets at the end of June, the market correction likely put substantial downward pressure on the fund’s asset value.

Min Kyung-jin, Hankyung.com reporter min@hankyung.com