NPS raises its allocation of domestic equities by 5.9 percent

The National Pension Service (NPS), a major player in the domestic stock market, decided to raise its allocation of domestic equities by 5.9 percentage points this year. It also decided not to extend the temporary suspension of rebalancing measures that is applied when the domestic equity allocation exceeds its target level.

The rebalancing measure refers to the process of adjusting its asset holdings to bring its portfolio back in line with predetermined target allocations.

The National Pension Service Management Committee held its fifth meeting of the year at the Government Complex in Seoul on Thursday and approved a midterm asset allocation plan for 2027 through 2031 that raises the target allocation for domestic equities from the current year-end benchmark 14.9 percent to a new 20.8 percent goal.

The midterm asset allocation plan is a key framework for managing the NPS fund, setting target returns and allocation ratios for each asset class over the next five years.

The NPS also decided to suspend the domestic equity rebalancing suspension measure, which is set to expire at the end of June, and instead determined target allocations and allowable ranges for each asset class.

The NPS had been expanding into overseas and alternative assets, but now is apparently shifting its direction toward increasing domestic equities.

BY YOON SO-YEON [[email protected]]