The National Pension Service reported a remarkable fund management return of over 27% in the first half of 2026, increasing its fund reserves to 1,866 trillion won. The strong performance was driven by a domestic stock return that surpassed 100%, aided by reduced uncertainties related to the Middle East conflict and robust results in the semiconductor sector.
As of June 30, 2026, the National Pension Service's fund reserves reached 1,866 trillion won, with a preliminary fund management return of 27.22% (based on weighted returns), the agency announced on August 28.
This impressive performance was fueled by a bullish domestic and international stock market. Among asset classes, domestic stocks stood out with a return of 107.37%, marking a three-digit increase. International stocks followed with a return of 17.81%, alternative investments at 9.60%, and overseas bonds at 9.22%. In contrast, domestic bonds recorded a negative return of -3.00%.
The National Pension Service attributed the explosive return in domestic stocks to a combination of easing uncertainties related to the Middle East conflict and solid performance in the semiconductor sector, which significantly contributed to the overall return.
In fact, the domestic stock market surged by 101.14% compared to the end of the previous year. International stocks also performed well, benefiting from a sustained investment cycle in artificial intelligence (AI) and strong results in technology stocks.
In the bond sector, domestic and international markets experienced contrasting fortunes. The U.S. Federal Reserve's decision to hold interest rates steady, along with tightening measures from major central banks, led to an overall rise in market interest rates (and a decline in bond prices). The yield on three-year government bonds in South Korea increased by 74.6 basis points (1 basis point = 0.01 percentage points) compared to the end of the previous year, while the yield on ten-year U.S. Treasury bonds rose by 20.7 basis points.
As a result, domestic bonds saw a decline in yield to -3.00% due to falling valuation from rising interest rates. Conversely, overseas bonds managed to achieve a positive return of 9.22%, aided by a 7.43% increase in the won-dollar exchange rate compared to the end of the previous year (indicating a depreciation of the won).
The alternative investment sector, which accounts for 14.0% of the total fund, recorded a return of 9.60%. The return on alternative investment assets reflects interest and dividend income, foreign exchange gains and losses due to currency fluctuations, and fair value assessments at the time of acquisition.
Kim Sung-joo, the chairman of the National Pension Service, stated, "In the first half of the year, we were able to achieve stable results thanks to favorable trends in both domestic and international stock markets. While we anticipate some fluctuations in returns due to high volatility in the second half, we continue to maintain good performance." He added, "We will strive to achieve high results this year through thorough risk management and diversified investments to generate long-term and stable returns."
* This article has been translated by AI.
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