National Pension Service begins adjusting domestic stock allocation… analysis says concerns over selling are excessive

As the adjustment of the National Pension Service's domestic stock allocation began on the 1st, the market is seeing various estimates regarding the scale of future selling. Some securities firms said that the amount of domestic stock sales by the National Pension Service could increase significantly depending on the KOSPI trend, but the National Pension Service denied the possibility of largescale selling. On this day in the securities market, pension funds net sold 217.8 billion won. The National Pension Service must adjust its domestic stock allocation so that it does not exceed the target level in accordance with the rules for asset class allocation, and the grace period that had been in place until the end of last month has also ended. However, in the market, the prevailing view is that actual selling is likely to be spread out over a long period rather than carried out all at once. NPS Chairman Kim Seongju explained that even if rebalancing proceeds, the selling impact will not be significant. He said the rule change was designed so that adjustments would take place gradually, and added that it would be operated in a way that reduces market impact.