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South Korea’s National Pension Fund plans to reduce overseas stock exposure and increase domestic allocation

South Korea’s National Pension Fund plans to reduce overseas stock exposure and increase domestic allocation

格隆汇格隆汇2026/01/26 10:14
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Glonghui, January 26|South Korea’s National Pension Service will reduce its allocation to overseas stocks this year, while slightly increasing its proportion of domestic stocks, in response to the surge in the KOSPI index and the depreciation of the Korean won. As of October 2025, the fund’s size is approximately 1,427.7 trillion won (about $990 billion). After a meeting of the fund’s management committee, the Ministry of Health and Welfare announced that the National Pension Service will lower its overseas stock allocation target from the previous 38.9% to 37.2%, while increasing the domestic stock allocation from 14.4% to 14.9%. The committee cited the difficulty of obtaining foreign exchange and the local foreign exchange market conditions as reasons for this adjustment. Nomura Holdings economist Jeong Woo Park explained that, in short, the National Pension Service will neither sell domestic stocks nor increase its holdings of overseas stocks. Given that the proportion of overseas stocks has already reached this year’s target level and there are no plans for further increases, its demand for US dollars is expected to be very limited.
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