South Korea's National Pension Service showed net buying of 68.4 billion won in the securities market from the 1st to 24th this month, according to Korea Exchange data released on the 26th. The pension fund's shift to net purchasing marks a reversal from six consecutive months of net selling that extended through last month. Market concerns about mass selloffs eased as the recent KOSPI decline reduced the fund's domestic stock allocation to approximately 25%, falling within the target range of 15-27% and diminishing the need for further rebalancing sales.
National Pension Service Records Net Buying in Monthly Trading
Pension funds including the National Pension Service purchased a net 68.4 billion won in the securities market from the 1st to 24th this month. Prior to this month, the funds had maintained net selling positions for six consecutive months. Monthly net selling amounts were 1.89 trillion won in January, 681.6 billion won in February, 764.8 billion won in March, 896.1 billion won in April, 2.16 trillion won in May, and 2.34 trillion won in June. During the first half of the year, net selling days exceeded half of all trading days each month, but this month only six trading days showed net selling.
SK Hynix Leads Purchase List While SK Square Tops Sales
SK Hynix received the largest net purchases this month at 425.8 billion won, marking the top position for two consecutive months. Other significant net purchases included SK Innovation at 224.7 billion won, S-Oil at 174.4 billion won, DB Insurance at 109.4 billion won, Celltrion at 95.3 billion won, and Korean Air at 89.9 billion won. SK Square recorded the largest net sales at 575.7 billion won. Samsung Electro-Mechanics followed with 313.6 billion won in net sales, along with Samsung Life Insurance at 123.8 billion won, LG Innotek at 111.9 billion won, and Samsung Electronics at 111.5 billion won.
Market Decline Reduces Rebalancing Pressure on Domestic Stocks
Markets had initially anticipated that up to 74 trillion won in selling could emerge this month following the end of the National Pension's rebalancing suspension at the end of last month. The securities industry suggests the recent market correction may have partially alleviated the pension fund's selling pressure. Lee Kyung-soo, researcher at Hana Securities, stated that the National Pension's domestic stock allocation likely decreased to approximately 25% as KOSPI fell about 30% from its peak. He explained that with the allocation now within the target range of 15-27%, the need for additional net selling rebalancing has diminished. The KOSPI decline reduced domestic stock valuations, lowering asset allocation ratios and potentially making some stocks attractive for low-price purchases.
Officials Confirm Gradual Approach to Asset Rebalancing
Kim Sung-joo, Chairman of the National Pension Service, previously addressed market concerns by stating that large-scale selling cannot occur within a short period. Health and Welfare Minister Jeong Eun-kyung stated that even if rebalancing proceeds, the operational process will be closely monitored to minimize market impact.
FAQ
What did South Korea's National Pension Service do in the securities market this month?
The National Pension Service showed net buying of 68.4 billion won in the securities market from the 1st to 24th this month, according to Korea Exchange data released on the 26th. This represents a shift from six consecutive months of net selling.
Why did the National Pension Service's selling pressure decrease?
The KOSPI decline of approximately 30% from its peak reduced the National Pension's domestic stock allocation to approximately 25%, which falls within the target range of 15-27%. This reduced the need for additional rebalancing sales, according to Hana Securities researcher Lee Kyung-soo.
Which stocks did the National Pension Service buy and sell the most this month?
SK Hynix received the largest net purchases at 425.8 billion won, while SK Square recorded the largest net sales at 575.7 billion won. Other significant purchases included SK Innovation, S-Oil, and DB Insurance, while significant sales included Samsung Electro-Mechanics and Samsung Electronics.
