NPS to Decide on Domestic Stock Investment Ratio Adjustment on the 28th

The National Pension Service (NPS) Fund Management Committee will hold a meeting on the 28th to review and approve the 'Mid-term Asset Allocation Plan for 2027-2031'. At this meeting, the proportion of domestic stocks in which the NPS will invest is expected to be determined.

In its January 2024 meeting, the Fund Management Committee adjusted the domestic stock allocation to 14.9% and domestic bond allocation to 24.9%, while lowering the overseas stock allocation to 37.2%. Including the permissible ranges for Tactical Asset Allocation (TAA) and Strategic Asset Allocation (SAA), the maximum possible holding proportion for domestic stocks can be expanded up to 19.9%. The NPS had set its target proportion for domestic stocks at 14.4% as of the end of 2026.

As of the end of February 2024, the NPS's actual domestic stock holding proportion was 24.5%. Reflecting the recent upward trend in the KOSPI, it is possible this has surpassed 25%. There are concerns that excessively increasing the domestic stock proportion could heighten volatility risks, given the current high level of the stock market, and that fund management stability must be considered. However, analyses also suggest that it is difficult to excessively limit profit opportunities, as the domestic stock market still has room for further gains and the NPS recorded its highest-ever returns last year.

Minister of Health and Welfare Jung Eun-kyung stated that the NPS fund has achieved excellent performance, driven by the performance of major asset classes such as domestic stocks. The Minister added that she would support the preparation of a rational plan, as the mid-term asset allocation plan is a crucial decision that influences long-term profitability and stability.