South Korea's National Pension Fund Sees 27% Return in First Half

South Korea's National Pension Fund has reported a robust investment return of 27.22% for the first half of 2026, according to preliminary figures released on August 28. The fund's total assets under management reached 1,866 trillion won as of June 30, 2026.

This performance marks a significant increase compared to previous years. The fund saw an annual return of 18.82% in 2025 and 15.00% in 2024. Since its establishment in 1988, the fund's cumulative return up to last year stood at 8.04%.

The strong performance in the first half of 2026 was largely driven by domestic equities, which delivered an impressive 107.37% return. This significantly surpassed the KOSPI index's gain of 101.14% over the same period. Overseas stocks also performed well, with a return of 17.81%, nearly double the MSCI World Index's return of 8.99%.

Other asset classes contributed positively, though to a lesser extent. Overseas bonds yielded 9.22%, and alternative investments returned 9.60%. Domestic bonds, however, experienced a negative return of -3.00%.

As of June 30, 2026, the fund's asset allocation included domestic stocks (29.1%), overseas stocks (35.4%), domestic bonds (15.4%), overseas bonds (5.9%), and alternative investments (14.0%).

Kim Sung-joo, Chairman of the National Pension Service, commented on the results, stating, "Thanks to the favorable performance of domestic and international stock markets in the first half, we achieved stable results. Although there have been some fluctuations in returns due to high volatility in the second half, we are continuing to maintain good performance."

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Thanks to the favorable performance of domestic and international stock markets in the first half, we achieved stable results. Although there have been some fluctuations in returns due to high volatility in the second half, we are continuing to maintain good performance.