The recent decline in the share prices of Samsung and SK Hynix has resulted in an estimated loss of 182 trillion won (approximately $137 billion) for South Korea’s major pension fund.
According to data from financial information provider FnGuide, the value of the National Pension Service (NPS) of South Korea’s holdings—defined as stakes of at least 5% in 287 publicly traded companies—fell from 515.93 trillion won at the end of June to 333.53 trillion won as of October 15. Based on the fund’s historical performance, this marks the first quarterly decline since the fourth quarter of 2024, representing a dramatic reversal in performance following a record-high rate of return in the first half of the year.
This downturn is largely due to the fund’s significant exposure to Samsung and SK Hynix, making it highly sensitive to cyclical fluctuations in their share prices. In the first half of the year, the fund reported a return of 27.2%—its best performance for that period since at least 2022. As of the end of June, the NPS managed assets totaling 1,866 trillion won (approximately $1.35 trillion).
In May, the fund increased its year-end target allocation for South Korean equities while reducing its target for overseas stocks, signaling a greater commitment to the domestic market—a market that had been one of the world’s best performers during the first half of the year.
SK Hynix accounted for the largest share of the decline, with the value of the NPS’s holdings in the company dropping by approximately 74.2 trillion won. The value of its holdings in Samsung fell by about 56.9 trillion won; together, these two stocks account for roughly 72% of the total decline in the value of the NPS’s equity portfolio.
The Korea Composite Stock Price Index (KOSPI) reached a record closing high of 9,114.55 points on June 22, but has since fallen by approximately 39% as of October 15. The National Pension Service (NPS) has reduced its stake in SK Hynix from 7.5% to 7.32%, while maintaining its 7.84% stake in Samsung Electronics.
The opposition People Power Party has criticized the NPS for failing to stabilize the market during the recent sell-off, arguing that the fund’s decision earlier this year to suspend rebalancing operations left it with less room to purchase stocks when the market declined.