South Korea's National Pension Service holdings shrink by $137 billion, with Samsung Electronics and SK Hynix as main drags.

Declines in the value of holdings such as Samsung Electronics and SK Hynix caused the market value of South Korea's main pension fund's holdings to shrink by 182 trillion won. According to financial data provider FnGuide, as of October 15, the valuation of the National Pension Service's stakes of 5% or more in 287 listed companies fell to 333.53 trillion won from 515.93 trillion won at the end of June. Based on the National Pension Service's past performance, this is the first quarterly decline since the fourth quarter of 2024, and it also marks a sharp reversal for the fund, which posted record returns in the first half. The reversal highlights the vulnerability of one of the world's largest pension funds to volatility in South Korea's domestic market. The National Pension Service holds large stakes in chipmakers Samsung Electronics and SK Hynix, making it particularly exposed to the boom-and-bust cycles of technology stocks. The decline stands in stark contrast to the National Pension Service's first-half performance. At that time, the fund's return reached 27.2%, its best performance for the same period since at least 2022. As of the end of June, the National Pension Service had 1,866 trillion won in assets under management. The National Pension Service could not immediately be reached for comment.