National Pension Service Chair Kim Sung-ju stressed that even if the National Pension Service moves to rebalance domestic stocks (asset reallocation), there is no chance it will become a "sell-off bomb" for the market.
Kim on the 1st posted on social media (SNS) an article titled "The truth about National Pension rebalancing and the 74 trillion sell-off bomb," saying, "At the fund management committee in May, we changed the rebalancing rules so that rebalancing would be carried out gradually over a long period," and added, "Even if we begin rebalancing, the possibility of a bomb is zero."
Kim explained that rebalancing does not mean large-scale selling. Defining rebalancing as readjustment, Kim said, "If you think of a scale or seesaw, when one side is too heavy or too light and tilts, you take a little off the heavy side or put a little more on the light side to balance it," adding, "If you take off too much because it is too heavy, it will skew again, so you have to do it little by little with precision, and rebalancing cannot become large-scale selling over a short period."
On the possibility of a 74 trillion won sell-off raised by some in the market, Kim criticized it as "a ridiculous number, though I don't know how they calculated it," and added, "I wonder when analysts started playing the role of 'fortune-teller.'"
Kim also emphasized the role of the National Pension Service. He said, "The National Pension Service is not an institution that immediately sells to realize gains when prices rise and immediately buys when they fall," adding, "As a 'universal owner' that grows together with Korea's economy, industries, and corporations, working for the people's interests and happiness in old age is the National Pension Service's mission."