National Pension Service (NPS) KOSDAQ Investment Exceeds 10 Trillion Won; Domestic Stock Investment Share in the 2% Range

[Financial News] The NPS's KOSDAQ holdings have surpassed 10 trillion won in value. However, after recording cumulative net selling since the beginning of the year, its investment share fell into the 2% range.
According to data that Park Min-gyu, a member of the Democratic Party of Korea on the National Assembly Political Affairs Committee, received from four major public pension institutions, including the NPS, the NPS's KOSDAQ holdings were valued at 10.3105 trillion won as of February this year.
The value of the NPS's KOSDAQ holdings fell from approximately 6.4 trillion won in 2021 to 4.5 trillion won in 2022, before recovering to 5.9 trillion won in 2023. It declined again to 4.3 trillion won in 2024, but rose to around 7.8 trillion won last year and surpassed 10 trillion won in February this year.
By contrast, the share allocated to KOSDAQ rose from 3.9% in 2021 to 4.1% in 2023 before trending downward. It fell to 3.01% last year and to 2.64% in February this year.
Park said, "Long-term, stable pension fund capital needs to support the growth of high-quality and innovative companies and contribute to revitalizing the KOSDAQ market."
Market observers are also watching whether institutional funds will continue to flow into the market following KOSDAQ's recent rebound. Last September, pension funds and others made net purchases of 149.1 billion won in the KOSDAQ market. However, on a cumulative basis from the beginning of the year through the 2nd, they recorded net selling of 73.8 billion won. During the same period, institutions overall and foreign investors made net purchases of 9.8694 trillion won and 2.7549 trillion won, respectively. Retail investors made net sales of 7.7022 trillion won.
The KOSDAQ Index experienced sharp fluctuations this year. After rising above the 1,000 mark and then breaking through 1,200 on expectations for policies to revitalize the market at the beginning of the year, it reached a year-to-date high of 1,226.18 on a closing basis on April 27 before falling to 644.78 on July 30. The decline over roughly three months reached 47%.
Semiconductor materials, parts and equipment stocks and biotech shares later led a recovery, pushing the index as high as 903.88 intraday on the 2nd. It was the first time in three months, since July 2, that the index had risen above 900 intraday. However, after giving up some of its gains, it closed at 893.29, down 0.11% from the previous trading day.
Analysts in the securities industry say the KOSDAQ's sharp correction has eased price overheating and valuation pressures.
Kang Young-hoon, a researcher at Samsung Securities, said, "As of September, the KOSDAQ had corrected to around 803p, near its 120-month moving average, and its July maximum drawdown (MDD) reached a level comparable to systemic risk," and analyzed, "With the index positioned near the 120-month moving average, the benchmark for the long-term trend, most of the price overheating has been eliminated. The price-to-earnings ratio (PER) has also fallen to its historical average, easing valuation pressures."
[email protected] Choi Doo-sun Reporter