National Pension Service to Reduce Domestic Investments and Increase Overseas Stocks Next Year

[Financial News] The National Pension Fund Management Committee (Fund Committee) has decided to reduce domestic stocks and expand overseas stocks for the asset allocation target for next year amid high global volatility.
The Fund Committee held the '2025 3rd National Pension Fund Management Committee' at the Government Complex Seoul on the 29th and approved the '2026-2030 National Pension Fund Mid-term Asset Allocation Plan'.
This Fund Committee reflected a 65% risk asset ratio of the standard portfolio, which is the basis for long-term fund management direction. The target asset allocation by 2030 for maximizing long-term returns is △stocks 55% △bonds 30% △alternative investments 15%.
The Fund Committee also approved the '2026 National Pension Fund Management Plan' on this day. The target asset allocation is △domestic stocks 14.4% △overseas stocks 38.9% △domestic bonds 23.7% △overseas bonds 8.0% △alternative investments 15.0%.
The target asset allocation at the end of this year was domestic stocks 14.9%, overseas stocks 35.9%, but domestic stocks were reduced by 0.5%p and overseas stocks were increased by 3%p. Domestic bonds were also reduced by 2.8%p from 26.5%.
The Fund Committee adjusted the entrusted management target range from 40%~80% to 30%~80% to expand direct management of overseas bonds based on the internalized overseas bond management capabilities of the Fund Management Headquarters, thereby reducing management fees and improving investment efficiency.
As of the end of March this year, the entrusted management ratio of overseas bonds by the National Pension Fund was about 42.8%.
Cho Gyu-hong, Minister of Health and Welfare, said, "Although the global investment environment is challenging due to downward revisions of economic growth forecasts by major overseas institutions and issues such as tariffs, financial market volatility can become an opportunity depending on thorough market analysis and swift response," and requested, "Please closely monitor the domestic and international financial market situations and respond promptly."
He added, "With pension reform, the period during which the fund can be actively managed has increased from the current 56 years to a maximum of 71 years," and requested, "Please discuss ways to enhance the profitability and stability of the fund at the Fund Committee in consideration of changes in conditions."

nodelay@fnnews.com Park Ji-yeon Reporter