National Pension Service to raise domestic stock limit by 5.9 percentage points

The National Pension Service 5 month 28 day decided to raise the limit for managing domestic stocks by 5.9 percentage points. The change to the management limit was made as part of an adjustment to the fund’s asset allocation range. The specific implementation date and phases are expected to be finalized through internal procedures.

On the same day, the National Pension Service decided to gradually reduce the share of domestic bonds. The reduction is planned to proceed in phases. The assets covered by the reduction and its pace will be determined in future investment plans.

It decided to expand the share of a specific domestic stock market allocation from 14.9% to 20.8%. The stated purpose of this measure was to prevent mechanical selling of certain stocks. The assets covered by the expansion and its operational approach will be reflected in the investment guidelines.

A range of views emerged, both inside and outside the organization, regarding the fund’s investment decision. Some voices pointed to investor losses and questions of accountability. Positions related to the labor union were also mentioned during the decision-making process.

Korea Investment Corporation has begun an open recruitment process for a chief investment officer (CIO). The open recruitment is a step taken in preparation for a possible change in senior management. The recruitment and appointment processes will be conducted in accordance with the corporation’s internal regulations.

The market reacted immediately. Some individual investors expressed relief as concerns about selling eased. Short-term supply and demand dynamics and volatility in the stock market may vary depending on future disclosures and investment plans.