National Pension Service’s South Korean Stock Holdings Lose $132 Billion as Samsung, SK Hynix Slide
Summary
- It said the marked-to-market value of the National Pension Service’s stakes in domestic listed companies fell by about 182.4 trillion won from the end of June as South Korea’s stock market tumbled.
- It said Samsung Electronics and SK Hynix alone accounted for declines of about 56.9 trillion won and 74.2 trillion won, respectively, making up roughly 72% of the total drop.
- It made clear that the decline was only a valuation loss driven by changes in domestic stock ownership stakes and market value, not a realized loss across the National Pension Service’s total assets under management.
Forecast Trend Report by Period
A sharp selloff in South Korea’s stock market, led by semiconductor shares, erased about 182.4 trillion won ($131.6 billion) from the value of the National Pension Service’s stakes in major listed companies.
According to data compiled by financial information provider FnGuide and cited by Bloomberg on October 19, the market value of the National Pension Service’s stakes of 5% or more in 287 South Korean listed companies stood at 333.53 trillion won ($240.8 billion) as of October 15, down 182.4 trillion won from 515.93 trillion won ($372.4 billion) at the end of June. It was the first quarterly decline in the value of those holdings since the fourth quarter of 2024.
The decline was concentrated in Samsung Electronics Co. and SK Hynix Inc. The value of the pension fund’s stake in SK Hynix fell by about 74.2 trillion won ($53.6 billion), while its Samsung Electronics stake dropped by about 56.9 trillion won ($41.1 billion). Together, the two stocks accounted for about 72% of the total decrease.
The National Pension Service posted a 27.2% return in the first half, aided by gains in the domestic stock market, in one of its strongest performances on record. Assets under management stood at 1,866 trillion won ($1.35 trillion) at the end of June. Since then, concerns about the sustainability of gains in artificial intelligence-related shares have driven broader market volatility.
The Kospi Index closed at a record 9,114.55 on June 22 and then fell about 39% through October 15. Over the same period, the National Pension Service’s stake in SK Hynix declined to 7.32% from 7.50%, while its Samsung Electronics stake was unchanged at 7.84%. In May, the pension fund raised its year-end target allocation to domestic equities and lowered its allocation to overseas stocks.
The market slump also triggered a political debate over the National Pension Service’s role in stabilizing the market. The People Power Party criticized the fund for suspending rebalancing earlier this year, arguing that the move left it with less capacity to buy during the downturn. Still, the decline reflects mark-to-market changes in the value of major holdings and does not represent realized losses across the pension fund’s overall assets under management.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.