South Korea's National Pension Service (NPS) net sold 466.5 billion won in domestic stocks during the one-week period from the 1st to the previous day, according to Korea Exchange data released on the 8th. The daily average of approximately 77.7 billion won in net sales showed little difference from the first half's daily average of 73.8 billion won, indicating no large-scale selling pressure despite market concerns about NPS rebalancing. NPS Chairman Kim Sung-joo stated on the 1st via personal social media that the rebalancing considers stock price levels, volatility, interest rates, exchange rates, and other factors, emphasizing 'zero possibility' of becoming a selling bomb. Market analysts attribute recent stock market declines primarily to excessive investor psychology and expanded foreign selling rather than NPS rebalancing itself. The Korea Exchange's 'pension funds and others' category, which is largely composed of NPS holdings, provides the net trading data.
NPS Net Sold 466.5 Billion Won Over One Week with Selective Stock Purchases
According to Korea Exchange data from the 1st to the previous day, 'pension funds and others' net sold 4,665 billion won (466.5 billion won) in the domestic stock market. The daily average net selling volume of approximately 77.7 billion won this month showed minimal difference from the first half's daily average of 73.8 billion won. Net selling concentrated on large holdings: SK Square (270 billion won), Samsung Electro-Mechanics (252.5 billion won), Samsung Electronics (142.8 billion won), and Samsung C&T (67 billion won). As of the first half, NPS held SK Square (19.792 trillion won), Samsung Electro-Mechanics (16.2388 trillion won), Samsung Electronics (153.185 trillion won), and Samsung C&T (6.5203 trillion won).
Despite already holding substantial positions, NPS increased allocations in several stocks. Pension funds and others net purchased Shinhan Financial Group (94.8 billion won), Hanwha Aerospace (55.9 billion won), Kia (40.8 billion won), and Samsung Biologics (21.7 billion won) this month. Notably, NPS bought 46.8 billion won of SK Hynix, its second-largest holding at 141.7143 trillion won.
NPS Chairman Kim Sung-joo Emphasizes Gradual Rebalancing Approach on the 1st
NPS Chairman Kim Sung-joo stated on the 1st via personal social media that "NPS rebalancing considers not only stock price levels but also volatility, interest rates, exchange rates, and various other factors," emphasizing that "the possibility of it becoming a bomb is zero." The pattern indicates NPS emphasized 'speed control' in rebalancing, avoiding short-term rapid selling. The rebalancing approach applies strategic asset allocation tolerance ranges more flexibly to account for market impact, according to the chairman's statement.
Market Analysts Attribute Stock Decline to Investor Psychology and Foreign Selling
Securities industry analysts diagnose that excessive market-wide concerns spread investor sentiment deterioration. Han Ji-young, researcher at Kiwoom Securities, stated: "Amid heightened volatility, market concerns grew over NPS rebalancing resumption. However, NPS announced it would apply strategic asset allocation tolerance ranges more flexibly considering market shocks. Second-half NPS rebalancing is expected to proceed gradually according to market conditions."
Regarding recent index adjustments, experts agreed that concerns about artificial intelligence (AI) industry contraction are spreading, but actual profit damage has not occurred. Cho A-in, Samsung Securities researcher, stated: "AI investment overheating controversy emerging from this year's short-term surge is a natural phenomenon. However, the current AI investment cycle is not judged to have peaked. US big tech earnings announcements at the end of this month will be a major turning point."
FAQ
How much did South Korea's NPS net sell in stocks from the 1st to the previous day?
NPS net sold 466.5 billion won in domestic stocks during the one-week period from the 1st to the previous day, according to Korea Exchange data released on the 8th. The daily average net selling of approximately 77.7 billion won showed little difference from the first half's daily average of 73.8 billion won.
What did NPS Chairman Kim Sung-joo say about rebalancing on the 1st?
NPS Chairman Kim Sung-joo stated on the 1st via personal social media that NPS rebalancing considers stock price levels, volatility, interest rates, exchange rates, and various other factors, emphasizing that the possibility of it becoming a selling bomb is zero. He indicated the rebalancing would apply strategic asset allocation tolerance ranges more flexibly to account for market impact.
Why do analysts say recent Korean stock market declines occurred despite limited NPS selling?
Market analysts attribute recent stock declines primarily to excessive investor psychology and expanded foreign investor selling rather than NPS rebalancing itself. Han Ji-young of Kiwoom Securities stated that market concerns grew over NPS rebalancing resumption amid heightened volatility, but NPS announced a gradual approach considering market shocks, with second-half rebalancing expected to proceed according to market conditions.
