South Korea’s National Pension Service (NPS) has reported a remarkable nearly threefold increase in the value of its domestic equity holdings over the past year. A substantial portion of these impressive gains, exceeding half, can be attributed to strategic investments in two leading Korean technology giants: Samsung Electronics and SK hynix.
New data released Tuesday by Leaders Index, following an analysis of 267 listed South Korean firms where the NPS maintains stakes of at least 5 percent, reveals the scale of this growth. The national pension fund’s total domestic equity holdings surged to 353.3 trillion won (approximately $240 billion) as of April 10, a significant jump from 129.2 trillion won recorded at the close of 2024.
This substantial 224.2 trillion won increase, representing an impressive 173.6 percent rise, was predominantly fueled by strong performance in South Korean semiconductor stocks. This highlights the NPS’s successful strategy in key growth sectors.
Specifically, the NPS’s investment in Samsung Electronics witnessed a spectacular increase in value, soaring from 23 trillion won to 94.8 trillion won – more than quadrupling its initial worth. Concurrently, the pension fund’s ownership stake in the global tech leader modestly grew from 7.3 percent to 7.8 percent.
Similarly, the value of NPS holdings in SK hynix experienced an even more dramatic ascent, leaping over sixfold from 9.6 trillion won to 58.9 trillion won. The pension fund’s stake in the memory chip giant also climbed, moving from 7.6 percent to 8.1 percent.
Together, these two semiconductor powerhouses, Samsung Electronics and SK hynix, were responsible for a combined 121.2 trillion won in investment gains, constituting approximately 54 percent of the NPS’s total portfolio increase.
On a broader scale, the national pension fund’s average ownership ratio across all analyzed companies saw a slight but notable increase, moving from 7.33 percent to 7.50 percent during the same impressive growth period.
Beyond semiconductors, other sectors also demonstrated robust performance for the NPS. The steel industry, for instance, recorded the fastest sectoral growth in valuation. The number of steel companies where the NPS holds more than a 5 percent stake expanded from six to nine, with the total value of these holdings surging over fivefold to 2.8 trillion won. This significant rise was largely propelled by strong gains in firms like Korea Zinc and Hyundai Steel.
Investments in South Korean securities firms also expanded sharply, more than tripling their value from 1.6 trillion won to 7.1 trillion won. Meanwhile, holdings in the shipbuilding and defense sectors collectively climbed 2.3 times, reaching a total of 31.7 trillion won, underscoring diversified portfolio success.
Furthermore, the number of companies where the NPS holds significant stakes exceeding 10 percent grew to 39, up from 38 at the close of 2024. Within this group, 20 companies maintained their established double-digit ownership levels, while 19 others newly crossed this important 10 percent threshold, indicating increased conviction in a broader range of firms.
Key examples of these major holdings include prominent South Korean entities such as Hansol Chemical, Shinhan Financial Group, KB Financial Group, POSCO Holdings, Naver, and Hana Financial Group, showcasing the breadth of the NPS’s strategic investments.
jylee
