South Korea's National Pension Service (NPS) achieved a record investment return of 27.22% in the first half of 2026, surpassing its previous annual high of 18.82% in 2025. This performance boosted the fund's assets to 1,866 trillion won (approximately $1.35 trillion) by the end of June, a significant increase from 1,458 trillion won at the close of last year. The strong showing was primarily attributed to a sharp rally in domestic equities and robust earnings from major technology companies.
Domestic equities were the largest contributor to this impressive return, soaring by 107.37% during the six-month period. The NPS attributed these gains to reduced uncertainty surrounding the Middle East conflict and strong corporate earnings, particularly within the semiconductor sector. Overseas equities also performed well, returning 17.81%, supported by the ongoing artificial intelligence investment cycle and solid financial results from leading tech firms.
Bond investments presented a mixed picture; domestic bonds posted a negative return of 3% due to rising interest rates, which devalued their holdings. In contrast, overseas bonds yielded a positive return of 9.22%, partly aided by the won's depreciation against the US dollar. Alternative investments contributed 9.6% to the overall return, reflecting interest and dividend income, foreign exchange gains, and fair-value assessments of underlying assets. As of May 2026, overseas investments accounted for over half of the NPS's financial assets.
NPS Chair and CEO Kim Sung-joo noted that favorable domestic and international equity markets were key to the solid first-half returns. He acknowledged that increased volatility in the second half has led to some fluctuations but affirmed that the fund is maintaining strong performance. Kim emphasized the NPS's commitment to achieving long-term, stable returns through rigorous risk management and diversified portfolio strategies.
