National Pension Service is not tool for propping up stock market

Joo Jung-wan

The author is an editorial writer at the JoongAng Ilbo

The government has decided to sharply increase stock investments by the National Pension Service (NPS), which manages the retirement savings of the Korean public. The decision was approved on Thursday by the National Pension Fund Management Committee. At that meeting, the committee raised the target allocation for domestic equities to 20.8 percent from 14.4 percent, a dramatic increase.

Health and Welfare Minister Jeong Eun-kyeong delivers opening remarks during the fifth National Pension Fund Management Committee meeting of 2026 at the Government Complex Seoul Annex in Jongno District, central Seoul, on May 28. The committee approved a significant increase in the National Pension Service’s target allocation to domestic equities. [NEWS1]

The move itself was not entirely unexpected. What raised greater concern was the committee’s decision to give the NPS more flexibility to exceed the target. It significantly expanded the allowable range for so-called strategic asset allocation, enabling the fund to purchase more domestic stocks in the short term.