South Korea's NPS domestic stock overweight is serious and may need to sell 55 trillion KRW to rebalance starting next month

(1) According to Yonhap Infomax, the National Pension Service (NPS) of South Korea will resume its domestic stock rebalancing operations next month (July) after suspending them at the end of June. (2) Previously, NPS had raised its target allocation weight for domestic stocks at the end of 2026 from 14.9% to 20.8% and expanded the strategic asset allocation range to 6 percentage points. However, its actual proportion of domestic stock holdings is currently estimated to be about 30%, far exceeding the allowed maximum. (3) To bring the portfolio back into compliance, NPS may need to gradually sell domestic stocks worth up to 55 trillion won in order to achieve its rebalancing target.