The National Pension Fund Management Committee will sharply raise the share of domestic stocks in the National Pension Service portfolio. It increased the existing domestic stock share from 14.9% to 20.8% and expanded the allowable range for strategic asset allocation (SAA), enabling holdings of more than 25.8% in domestic stocks.
The National Pension Fund Management Committee held the "5th National Pension Fund Management Committee of 2026" on the 28th at Government Complex Seoul in Jongno-gu, Seoul, submitted an adjustment plan for target shares by asset for 2026 and a midterm asset allocation plan for 2027–2031, and adjusted target shares by asset class in consideration of the financial market, economic outlook, and the feasibility of policy conditions.
First, the committee raised the 2026 domestic stock target share from 14.9% to 20.8%. This move reflects the expanded actual holding share of domestic stocks and aims to minimize market shock from rebalancing (asset readjustment). It also adjusts overseas stocks to 34.7%, domestic bonds to 23.1%, overseas bonds to 7.4%, and alternative investments to 14%. The new target shares will apply from the end of June, when the rebalancing deferral ends.
The committee also decided to temporarily expand the SAA allowable range for domestic stocks to respond more flexibly to the highly volatile domestic stock market. The previous SAA allowable range was ±3 percentage points from the target share. However, to minimize market impact, it decided not to disclose the specific level of the expanded range.
Accordingly, the National Pension Service's maximum domestic stock holding share could expand to more than 25.8%. This figure reflects the tactical asset allocation (TAA) allowable range of 2 percentage points and the minimum SAA allowable range of 3 percentage points on the domestic stock target share of 20.8%. This exceeds the National Pension Service's domestic stock holding share of 24.5% as of the end of Feb., and large-scale domestic stock sell-off concerns are expected to ease considerably.
The committee also finalized the midterm asset allocation plan for 2027–2031 on the day. The target shares by asset class for 2027 are set at 20.8% for domestic stocks, 35.6% for overseas stocks, 21.8% for domestic bonds, 7.4% for overseas bonds, and 14.3% for alternative investments. It also presented target shares by asset class as of the end of 2031 at around 55% for stocks, around 30% for bonds, and around 15% for alternative investments.
Minister Jung Eun-kyeong of the Ministry of Health and Welfare said, "This midterm asset allocation is a decision that enhances the National Pension Fund's long-term revenue and stability in response to recent changes in market conditions, while also considering the impact on the financial market," adding, "As the stable management of the National Pension Fund is a key task to protect the public's valuable retirement funds and support long-term fiscal stability, we will continue to closely monitor market conditions so that fund management can balance principles and flexibility."