Korean stock surge drives 4.08% return for National Pension Service in H1

A weaker dollar dragged down overseas investment returns amid concerns over the fallout of US tariff policies

Korean stock surge drives 4.08% return for National Pension Service in H1
Gyeong-Jin Min 1
2025-08-28 19:47:19 min@hankyung.com
Pension funds

The National Pension Service (NPS), the world's third-largest pension scheme, posted a 4.08% return on investment in the first half of this year, with robust gains in domestic equities offsetting negative returns from overseas bonds and alternative assets.

Domestic stocks at South Korea's state-run fund delivered a 31.34% return, outperforming the Kospi index's 28.01% gain over the same period.

The South Korean stock market has extended an upward streak since President Lee Jae Myung took office in early June. Lee has vowed policy efforts to drive the Kospi to 5,000 points, a milestone unseen in South Korea's stock market.

Overseas assets underperformed, weighed down by a weaker dollar amid concerns over the fallout of Washington's tariff policies. The softer dollar eroded returns when translated into the Korean won.

Returns from alternatives consisted primarily of interest income, dividends and foreign exchange gains or losses, without reflecting changes in fair-value assessments.

Assets under management (AUM) at the NPS rose by 56 trillion won to 1,269 trillion won ($915 billion) as of the end of June, compared to the end of 2024.
 
Korean stock surge drives 4.08% return for National Pension Service in H1

Write to Gyeong-Jin Min at min@hankyung.com
Yeonhee Kim edited this article.

IMM Credit closes $700 mn blind credit fund backed by NPS

IMM Credit closes $700 mn blind credit fund backed by NPS

2024 IMM annual general meeting (Courtesy of IMM Holdings)  IMM Credit & Solutions Inc. (ICS), the private credit unit of South Korea’s major investment firm IMM Holdings Inc., has raised nearly 1 trillion won ($728 million) for its first blind credit fund from more than 30 domes

NPS, Scape acquire Aussie senior living operator Aveo from Brookfield

NPS, Scape acquire Aussie senior living operator Aveo from Brookfield

Residence buildings of Aveo’s Derwent Waters Retirement Living on the banks of the Derwent River in Claremont, Australia (Courtesy of Aveo) South Korea’s state-run pension fund, the National Pension Service (NPS), has partnered with Australia’s student housing specialist Scape

S.Korea’s pension fund NPS posts weaker returns amid US tariff concerns

S.Korea’s pension fund NPS posts weaker returns amid US tariff concerns

The National Pension Service is South Korea's largest institutional investor The National Pension Service (NPS), South Korea’s state-run pension fund and the country’s largest institutional investor, is posting sharply reduced investment returns this year, weighed down by losses in

US monitors NPS, sovereign funds in expanded currency surveillance

US monitors NPS, sovereign funds in expanded currency surveillance

 The South Korean won hit a seven-month high against the US dollar on June 5 Washington will strengthen its monitoring of portfolio investments by pension and sovereign wealth funds of its trading partners as it broadens its scope of oversight to include tracking the funds' capital flows a

NPS boosts allocation to direct lending, secondaries

NPS boosts allocation to direct lending, secondaries

Kim Tae-hyun, chairman of the National Pension Service, speaks at ASK 2025 The National Pension Service (NPS), the world’s third-largest pension fund, has been further diversifying its portfolio through increased exposure to direct lending and secondary deals since introducing a new bench

NPS logs 0.87% return from first-quarter investment

NPS logs 0.87% return from first-quarter investment

NPS building  The National Pension Service (NPS), South Korea’s state-run pension fund and the country’s largest institutional investor, announced on Friday it logged a 0.87% return from its investment activities in the first quarter, thanks to the solid performance of domestic

NPS to lift stock holdings to 55% by 2030, raising risk appetite

NPS to lift stock holdings to 55% by 2030, raising risk appetite

The National Pension Service is headquartered in Jeonju, North Jeolla Province The National Pension Service (NPS) plans to raise its equity allocation to about 55% of its assets by 2030 from 40.4% as of the end of February, South Korea’s welfare ministry said on Thursday, as it increases

NPS, KIC step up focus on mid-market infrastructure

NPS, KIC step up focus on mid-market infrastructure

Lee Jaewook (second from left), head of infrastructure investment division at NPS and Kim Wonbin (third from left), a senior director of KIC The National Pension Service (NPS) and Korea Investment Corp. (KIC) are actively exploring mid-market infrastructure opportunities as they are expected to

NPS to ramp up shareholder engagement with overseas companies

NPS to ramp up shareholder engagement with overseas companies

NPS' headquarters building in Jeonju  South Korea’s National Pension Service (NPS) plans to deepen shareholder engagement with its foreign portfolio companies, signaling a more assertive stance on active ownership as its overseas equity holdings grow. According to the National Pensio

NPS gears up for investment overhaul with boost in risk assets

NPS gears up for investment overhaul with boost in risk assets

NPS Investment Management's headquarters building  South Korea’s National Pension Service (NPS), the country’s largest institutional investor, is set to overhaul its investment strategy with a focus on increasing exposure to higher-risk assets to enhance returns, about a month

S.Korea’s NPS to double pension fund size by 2050, hike risky assets

S.Korea’s NPS to double pension fund size by 2050, hike risky assets

NPS' headquarters in Jeonju, South Korea South Korea’s National Pension Service (NPS) is projected to nearly double its fund size to 3,500 trillion won ($2.38 trillion) by 2050, following a recent reform designed to strengthen its operational strategy and delay the fund's depletion.The go

Korea’s pension fund NPS rules out investing in MBK’s hostile M&A deals

Korea’s pension fund NPS rules out investing in MBK’s hostile M&A deals

The National Pension Service is South Korea's largest institutional investor South Korea’s National Pension Service (NPS) said on Monday it will not participate in investments related to hostile mergers and acquisitions led by MBK Partners Ltd., a Seoul-based private equity firm (PEF) rec

NPS to buy stake in Australia’s Metrics to expand alternative investments

NPS to buy stake in Australia’s Metrics to expand alternative investments

Seoul office of the National Pension Service (File photo by Eun-Koo Kang) South Korea’s National Pension Service (NPS), the world’s third-largest pension fund, has agreed to buy a stake in Australian asset manager Metrics Credit Holdings Pty Ltd. to expand its alternative investment

(* comment hide *}