The National Pension Service will suspend automatic trades (rebalancing) to adjust domestic and overseas stock weights through the first half.
National Pension Service (NPS) Chairman Kim Sung-ju said on the 4th that the fund plans to temporarily defer through the first half the rebalancing that mechanically sells domestic stocks when the asset allocation exceeds the permitted range, according to reports. This further specifies the deferral timeline compared with what was released at the first meeting of the National Pension Fund Management Committee (the committee) on the 1st of last month.
Earlier, at the committee's first meeting, the target weight for domestic stocks in the National Pension Service at the end of this year was raised by 0.5 percentage point, while the target weight for overseas stocks was lowered by 1.7 percentage points. The investment allowance range by asset class will be maintained, but mechanical selling when the weight exceeds the range will be temporarily deferred.
At the time, the committee said, "The current rebalancing method was devised when the fund size was about 713 trillion won (2019)," and added, "With the fund size more than doubling to about 1,438 trillion won as of the end of November 2025, applying the same criteria could more than double the rebalancing volume and amplify market impact."
This decision also appears to have been influenced by remarks from President Lee Jae-myung. At a National Pension Service work briefing late last year, Lee said, "With domestic stock prices rising, the National Pension Service may need to consider the allocation weight for domestic stocks." At the time, Chairman Kim Sung-ju said, "We will convene the committee and change the investment guidelines."