South Korea's NPS Raises 2026 Domestic Equity Target to 20.8% as Kospi Rally Risks Forced Sales
Updated
Updated · Bloomberg · May 28
South Korea's NPS Raises 2026 Domestic Equity Target to 20.8% as Kospi Rally Risks Forced Sales
1 articles · Updated · Bloomberg · May 28
20.8% is the National Pension Service’s new 2026 year-end target for domestic equities, up from 14.9% set in January after the Kospi rally pushed holdings above the old ceiling.
34.7% is the fund’s revised foreign-stock target, down from 37.2%, showing the shift was mainly a rebalancing move to accommodate higher local-share exposure.
1,610.4 trillion won ($1.07 trillion) in assets were managed by the NPS as of February 2026, making the allocation change significant for South Korea’s stock market.
Thursday’s decision by the fund’s management committee may ease pressure for forced Kospi selling, a risk that had grown as domestic shares surged.
As Korea's pension giant cuts foreign buys, will its new hedging strategy manage to stabilize the struggling won?
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