National Pension Service Sold Samsung Electronics and Bought Samsung Biologics... Domestic Stock Ratio Decreases

[Asia Economy Reporter Park So-yeon] It has been revealed that the National Pension Service (NPS) has reduced its domestic stock holdings, focusing on large-cap stocks such as Samsung Electronics.

According to CEO Score, a corporate data research institute, as of the end of last year, the number of domestic listed companies in which the NPS invested 5% or more was 265, down by 10 from 275 at the end of the previous year. Compared to 314 in 2019, it decreased by 49.

As of the end of last year, the number of stocks in which the NPS’s shareholding ratio decreased was 216, more than twice the number of stocks that increased (103).

Previously, the NPS announced an asset allocation plan to reduce the domestic stock ratio from 16.8% at the end of last year to around 15% by 2025, while increasing the proportion of overseas stocks.

The stock value of stocks in which the NPS holds 5% or more investment was KRW 154.5642 trillion as of the end of last year, down 5.9% (KRW 9.6593 trillion) from KRW 164.2235 trillion at the end of 2020.

The NPS changed its investment strategy by reducing investments in the information and communication technology (IT), electric, and electronics sectors and expanding investments in the pharmaceutical and bio sectors.

By company, the stock value of Samsung Electronics held by the NPS decreased the most.

As of the end of last year, the stock value of Samsung Electronics held by the NPS was KRW 41.1752 trillion, a decrease of KRW 11.1841 trillion (21.4%) compared to one year earlier.

The shareholding ratio in Samsung Electronics fell by 2.01 percentage points (p) from 10.70% at the end of 2020 to 8.69% at the end of last year.

Next, LG Chem decreased by KRW 2.7125 trillion (shareholding ratio down 2.93%p), Celltrion by KRW 2.0088 trillion (0.88%p↓), NCSoft by KRW 1.2901 trillion (3.72%p↓), and SK Telecom by KRW 866.6 billion (1.17%p↓) in terms of stock value and shareholding ratio.

On the other hand, the largest increase in stock value held by the NPS as of the end of last year was Samsung Biologics, newly acquired at KRW 3.3815 trillion with a shareholding ratio of 5.66%.

Following that, the NPS newly acquired stocks such as Krafton at KRW 1.6013 trillion (shareholding ratio 7.11%), HYBE at KRW 1.0219 trillion (7.08%), SK Bioscience at KRW 863.7 billion (5.02%), SK Square at KRW 835.5 billion (8.89%), and SK IE Technology at KRW 599.8 billion (5.01%).