Power of NPS
According to the Korea Exchange, the National Pension Service had stocks of listed South Korean companies worth 102.6 trillion won (US$87.2 billion) as of the end of last year, equivalent to 18.4% of the fund it runs and approximately 7% of the aggregate value of the South Korean stock market. “The National Pension Service had a shareholding ratio of at least 5% in 285 listed companies as of March 2 this year,” the Korea Exchange explained.
At present, the National Pension Service is a major shareholder in many large corporations, including the listed subsidiaries of the top 10 business groups such as Samsung, Hyundai Motor, SK, LG and Hanwha. Specifically, its shareholding ratio amounts to 9.03% in Samsung Electronics, 9.02% in Hyundai Mobis and 8.13% in SK Telecom.
In addition, the figure is as high as 13.5% in Samyang Holdings, 12.85% in Shinsegae, 12.62% in Kumho Petrochemical, 11.94% in Nongshim, 11.91% in Hyosung, 10% in Hyundai Department Store, 10.88% in POSCO, 10% in KT, 9.85% in KB Financial Holdings, 9.72% in Hana Financial Holdings and 9.55% in Shinhan Financial Group.
The National Pension Service’s investment in the domestic stock market has continued to increase with approximately 50 trillion won (US$42.5 billion) added to its fund a year on average. For years, the National Pension Service has maintained the ratio of its investment in the domestic stock market to the fund at 20% or so.