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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Seoul, November 3, 2025 — South Korea’s National Pension Service (NPS) has, for the first time in its history, invested more than 50% of its total assets in equities, underscoring a strategic shift toward higher-return investments amid a prolonged low-interest-rate environment.
According to NPS’s fund management data as of end-June 2025, the fund’s total assets stood at ₩1,269 trillion (approximately USD 925 billion), of which ₩635.6 trillion (50.1%) was invested in domestic and global equities.
This marks a significant reversal from a decade ago, when bonds dominated the fund’s portfolio. At the end of 2015, bonds accounted for 56.6% of total assets, while equities represented only 32.2%. As of June 2025, the bond allocation has declined to 33.0%.
Breaking down the equity holdings, the NPS holds ₩189 trillion (14.9%) in domestic stocks and ₩446 trillion (35.2%) in overseas equities, meaning foreign investments now make up more than twice the size of its domestic equity exposure.
Analysts say the NPS’s move reflects a broader trend among global pension funds to diversify geographically and enhance long-term returns, while also responding to the strong performance of U.S. and global tech markets over the past two years.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
