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Photo = Yonhap news |
[Alpha Biz= Paul Lee] On May 29, the Investment Management Committee of South Korea’s National Pension Service (NPS) convened at the Government Complex Seoul to approve the 2026–2030 Mid-Term Asset Allocation Plan and the 2026 Annual Fund Management Plan amid rising global market volatility.
The newly adopted mid-term plan reflects a target 65% allocation to risk assets in the reference portfolio aimed at maximizing long-term returns. By the end of 2030, NPS aims to allocate approximately 55% to equities, 30% to bonds, and 15% to alternative investments.
Under the 2026 annual plan, the target asset allocation is as follows:
Domestic equities: 14.4%
Overseas equities: 38.9%
Domestic bonds: 23.7%
Overseas bonds: 8.0%
Alternative investments: 15.0%
Compared to the 2025 year-end targets — domestic equities at 14.9% and overseas equities at 35.9% — the 2026 plan reduces domestic equities by 0.5 percentage points while increasing overseas equities by 3 percentage points. Domestic bonds are also being reduced from 26.5% to 23.7%.
The committee also revised the target range for outsourced management of overseas bonds to reflect strengthened internal capabilities. The permissible range has been adjusted from 40%–80% to 30%–80%, enabling greater direct management and improved cost efficiency.
As of the end of March 2025, approximately 42.8% of the NPS’s overseas bond investments were managed externally.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
