South Korean pension fund’s major domestic shareholdings lose 182 trillion won in value
In short
The value of South Korea’s National Pension Service holdings in a sample of 287 listed companies fell about 182.4 trillion won, or 35.3%, between June 30 and Oct. 15, outlets reported, citing FnGuide. Samsung Electronics and SK hynix accounted for 71.8% of the decline.
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South Korea’s National Pension Service saw the value of its holdings in a sample of 287 domestic listed companies fall about 182.4 trillion won between June 30 and Oct. 15, according to reports citing financial data provider FnGuide. The holdings were valued at about 333.5 trillion won on Oct. 15, compared with about 515.9 trillion won at the end of June, a decline of 35.3%. The analysis covered companies in which the fund disclosed stakes of at least 5% at the comparison dates. [ 1 , 2 , 4 , 6 , 10 ]
Samsung Electronics and SK hynix accounted for 71.8% of the decline as their share prices fell. The fund’s SK hynix holdings lost about 74.2 trillion won in value, while Samsung Electronics holdings fell about 56.9 trillion won. Samsung’s share price dropped from 334,000 won to 210,000 won over the period, while SK hynix fell from 2.65 million won to 1.262 million won. Across the sample, 176 stocks lost value. SK Innovation was among the gainers, with the fund’s holdings rising by 904.1 billion won as its share price and the fund’s stake increased. [ 1 , 2 , 4 , 5 , 6 ]
Seoul Economic Daily reported criticism of the fund’s earlier decision to suspend domestic equity rebalancing. The suspension began Jan. 26, and rebalancing resumed July 1, the outlet said. At an Oct. 14 parliamentary audit, the fund’s head said the pause was intended to reduce the market impact of large share sales. Opposition lawmakers questioned the consistency of investment principles and transparency of decision-making. The fund also adjusted individual positions, raising its stake in GS Engineering & Construction from 7.82% to 12.88% and cutting Samsung Biologics from 10.27% to 6.56%, according to the reports. [ 2 , 5 , 8 ]
Why it matters
The losses prompted criticism of the pension fund’s investment management and its earlier suspension of domestic equity rebalancing. The fund’s head said the suspension was intended to reduce the market impact of large share sales.
Key facts
- The sampled holdings were valued at about 333.5 trillion won on Oct. 15, down from about 515.9 trillion won at the end of June. [ 1 , 2 , 4 , 5 , 6 , 8 , 9 , 10 , 13 ]
- The analysis covered 287 companies in which the fund disclosed stakes of at least 5% at the comparison dates. [ 1 , 2 , 4 , 6 , 10 ]
- Samsung Electronics and SK hynix accounted for 71.8% of the decline. [ 1 , 2 , 4 , 5 , 6 , 9 , 10 ]
- Holdings lost value in 176 of the 287 stocks. [ 1 , 2 , 4 , 5 , 6 , 8 , 9 ]
- Seoul Economic Daily reported that domestic equity rebalancing resumed July 1 after a temporary suspension. [ 8 ]