The National Pension Service (NPS) saw its stock portfolio value surge by nearly 80 trillion won in the first quarter as Korea's domestic equity market posted strong gains.
According to financial data provider FnGuide on Wednesday, the total valuation of NPS holdings in listed companies where it owns stakes of 5% or more surpassed 323.76 trillion won ($238 billion) as of early this month. This represents an increase of 78.55 trillion won from the end of last year, translating to a return of 32.0%.
The scale of valuation gains expanded further from the previous quarter. While the return rate was slightly lower than the 35.4% recorded in Q4 last year, the actual profit grew larger as asset values climbed significantly amid the bull market.
Semiconductor Effect: Samsung Electronics and SK hynix Drive 62.7% of Gains
Large-cap semiconductor stocks were the key driver behind the surge in portfolio value. Although NPS maintained its 7.75% stake in Samsung Electronics (005930.KS), the valuation jumped 63.8% from 54.99 trillion won to 90.12 trillion won, an increase of 35.13 trillion won. SK hynix (000660.KS) saw its stake rise from 7.35% to 7.50%, with valuation climbing 40.7% from 34.81 trillion won to 48.99 trillion won, an increase of 14.17 trillion won.
These two stocks alone accounted for 62.7% of the total portfolio valuation increase. Hyundai Motor (005380.KS) added 2.64 trillion won and Hanwha Aerospace (012450.KS) gained 2.43 trillion won in valuation. NPS holds 7.31% and 7.92% stakes in these companies respectively.
NPS Shifts Focus to KOSDAQ, Expanding Bets on Small-Cap Growth Stocks
NPS also restructured its portfolio during the first quarter. The pension fund newly acquired stakes of 5% or more in 22 companies, while 15 companies saw their stakes fall below the 5% threshold. Among newly added holdings, 14 were KOSDAQ-listed and 8 were KOSPI-listed, indicating a greater emphasis on the secondary market. Meanwhile, stakes fell below 5% in 8 KOSDAQ and 7 KOSPI companies.
Daejoo Electronic Materials showed the most significant change, with NPS's stake surging to 10.01%. Vinatech (8.68%) and RF Materials (7.43%) also crossed the 5% threshold, with KOSDAQ stocks claiming the top three positions for stake increases. This is interpreted as investment expansion in response to government policies aimed at revitalizing the KOSDAQ market. On KOSPI, Kakao Pay recorded the highest stake among newly added holdings at 6.10%.
The number of companies in which NPS holds stakes of 5% or more increased from 269 to 276, while holdings of 10% or more rose from 34 to 37 companies. Stakes remained unchanged in 114 companies including Samsung Electronics, increased in 105 companies including SK hynix, and decreased in 74 companies.
YG Entertainment saw its stake edge down slightly from 5.09% to 5.05%. Notably, HD Hyundai Infracore, where NPS held a 13.21% stake in Q4 last year, saw its holding fall below 5% in the first quarter.