The National Pension Service has decided to temporarily suspend automatic trading (rebalancing) for adjusting the share of domestic and overseas stocks.
National Pension Service Chairman Kim Sung-ju was quoted on the 4th as saying that deferring the "rebalancing," which mechanically sells domestic stocks even when the asset allocation tolerance is exceeded, is a temporary measure.
Earlier, at the first meeting of the fund committee, the target share of domestic stocks for the National Pension Service as of the end of this year was raised by 0.5 percentage point, while the target share of overseas stocks was lowered by 1.7 percentage points. The investment tolerance by asset class will be maintained, but mechanical selling when the share exceeds the limit will be deferred.
At the time, the fund committee said, "The current rebalancing method was devised when the fund size was about 713 trillion won (2019)," and added, "If the same criteria are applied when the fund size has more than doubled to about 1,438 trillion won at the end of Nov. 2025, the scale of rebalancing will also more than double, which could increase market impact."
This decision also appears to have been influenced by remarks from President Lee Jae-myung. At a National Pension Service briefing late last year, the president said, "With domestic stock prices rising, the National Pension Service may need to reconsider its domestic stock allocation." At the time, Chairman Kim Sung-ju said, "We will convene the fund committee to change the investment guidelines."