(Photo= Yonhap news)

[Alpha Biz= Reporter Kim Minyoung] The National Pension Service is increasing its allocation to overseas stocks compared to domestic stocks.

On the 31st, the National Pension Service Fund Management Committee held its fourth meeting and announced the decision on the medium-term asset allocation for fund management from 2025 to 2029, setting the target rate of return at 5.4%. The target allocation by asset class at the end of next year is 14.9% for domestic stocks, 35.9% for overseas stocks, 26.5% for domestic bonds, 8% for overseas bonds, and 14.7% for alternative investments. To enhance returns, the allocation to overseas stocks has been set 21 percentage points higher than that of domestic stocks.

The aim is to prevent pension depletion and enhance profitability by allocating a larger portion to overseas stocks, which are expected to yield higher returns. This year, while the U.S. S&P 500 Index and Nasdaq Composite Index increased by 10.39% and 13.35% respectively, the KOSPI fell by 0.71%.

Pension funds, including the National Pension Service, sold 592.6 billion won in the domestic stock market throughout the year.

 

 

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