South Korea's National Pension Service Reports Significant Losses Due to Investments in Samsung and SK Hynix

The National Pension Service (NPS) of South Korea has reported a substantial decline in the value of its investments, primarily due to heavy holdings in Samsung Electronics and SK Hynix. As of October 15, the estimated value of shares held by NPS in 287 listed companies with a holding ratio of 5% or more has decreased from approximately 515.93 trillion Korean won (about 386 billion USD) at the end of June to 333.53 trillion Korean won (around 253 billion USD), marking a loss of about 182 trillion Korean won (approximately 13.7 billion USD).

The losses are largely attributed to the market value of SK Hynix, which has dropped by around 74.2 trillion Korean won, and Samsung Electronics, which has seen a decline of 56.9 trillion Korean won. Together, these two companies account for about 72% of the total decrease in market value for NPS. Despite achieving a 27.2% investment return rate in the first half of 2026, the market has reversed sharply, leading to the first quarterly decline in value for these core holdings since late 2024.

The KOSPI index, which reached a historical high of 9114.55 points on June 22, has since fallen by approximately 39%. The decline has been exacerbated by concentrated selling from foreign investors, who have targeted these two companies, accounting for nearly 80% of the total net selling. Analysts have expressed mixed views on the future of storage stocks, with some suggesting that valuations may have bottomed out, while others warn of potential downward adjustments in earnings expectations if global AI companies reduce capital expenditures. NPS has not yet issued a formal statement regarding the significant losses in its portfolio.

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Source: KLEA News