(Herald DB) The National Pension Service resumed rebalancing its domestic equity portfolio this month, but the pace of selling during the first three trading days was slower than investors had feared, suggesting the market impact may be less severe than expected.The NPS, the world's third-largest pension fund with more than 2,000 trillion won ($1.47 trillion) in assets under management, increased holdings in stocks including SK hynix, Hanwha Aerospace and Hybe while continuing to trim its overall domestic equity exposure.The fund net sold 215.8 billion won ($141 million) worth of Kospi-listed shares over the three trading days from Wednesday through Friday, according to Korea Exchange data covering both the KRX and Nextrade markets.The fund sold a net 218 billion won Wednesday and 53.4 billion won Thursday before becoming a net buyer with purchases of 55.7 billion won on Friday. Average daily net selling came to 71.9 billion won, down 35.6 percent from 111.7 billion won in June.Analysts said the slower pace reflected weaker market momentum after the Kospi retreated from recent highs, easing pressure on the fund to rebalance. They added that the NPS typically spreads sales over time to minimize market disruption, suggesting rebalancing-related selling could be smaller than initially feared.Selling was concentrated in stocks that had rallied strongly earlier this year. Samsung Electronics was the biggest net sale at 212.5 billion won, followed by SK Square with 196.7 billion won, Samsung Electro-Mechanics with 124.5 billion won and Samsung C&T with 65.2 billion won.Despite reducing its overall domestic equity exposure, the NPS increased holdings in selected semiconductor, defense and financial stocks. SK hynix was the biggest net purchase at 108.1 billion won, followed by Hanwha Aerospace with 56.7 billion won, Shinhan Financial Group with 52.4 billion won and Hybe with 33.7 billion won.Under its strategic asset allocation plan, the NPS periodically adjusts its portfolio to keep asset classes within target ranges.In May, it raised the target allocation for domestic equities to 20.8 percent from 14.9 percent and widened the strategic asset allocation tolerance band to plus or minus 6 percentage points from plus or minus 3 percentage points.After the Kospi climbed above 9,000 late last month, some analysts estimated rebalancing-related selling could total 50 trillion won to 70 trillion won.Health and Welfare Minister Jeong Eun-kyeong, chair of the National Pension Fund Management Committee, and NPS Chairman Kim Sung-joo have both sought to reassure investors that the market impact will remain limited.