"Just Holding Still"... National Pension Service Gains 70 Trillion Won Thanks to Samsung and SK Hynix

In Q4 Last Year, National Pension Service's Valuation Surged by 70 Trillion Won
Over 47 Trillion Won Increase from Just Two Semiconductor Companies

The stock prices of Samsung Electronics and SK Hynix surged sharply in the fourth quarter of last year, resulting in a significant increase in the National Pension Service's stock valuation.

Yonhap News Agency

According to financial information provider FnGuide on January 11, as of January 7, the valuation of stocks held by the National Pension Service in listed companies where it owns 5% or more-thus subject to disclosure-amounted to 266.1386 trillion won. This represents a 35.48% (69.6944 trillion won) surge compared to 196.4442 trillion won at the end of the third quarter last year.

The nearly 70 trillion won increase in stock valuation in just one quarter was largely driven by the sharp rise in the stock prices of the two major semiconductor giants. Samsung Electronics and SK Hynix saw the largest increases in valuation in the fourth quarter, with their valuations rising by 26.1882 trillion won and 21.0967 trillion won, respectively. Together, these two companies accounted for 67.85% of the total increase in the National Pension Service's stock valuation in the fourth quarter of last year. The National Pension Service holds a 7.75% stake in Samsung Electronics and a 7.35% stake in SK Hynix. Considering that its stake in both companies remained unchanged from the end of the third quarter last year, it is clear that the increase in valuation was driven by the rise in stock prices.

Samsung Electronics, benefiting from a super-boom in memory semiconductors, became the first Korean company to post an operating profit of 20 trillion won (provisional) in the fourth quarter of last year. During this period, Samsung Electronics' stock price rose by 63.95%, while SK Hynix's stock price jumped 106.11%.

Following these two semiconductor giants, the stocks with the next largest increases in valuation were SK Square (2.9595 trillion won), Hyundai Motor Company (2.0281 trillion won), and Samsung Epis Holdings (1.1618 trillion won). Notably, Samsung Epis Holdings was listed on the Korea Exchange on November 24 last year after being spun off from Samsung Biologics. As a holding company, Samsung Epis Holdings manages stakes in subsidiaries such as Samsung Bioepis and Epis Next Lab, and pursues new investment projects.

In the fourth quarter of last year, the National Pension Service newly disclosed that it held stakes of 5% or more in 17 companies, including Samsung Epis Holdings, POSCO Future M, Hanon Systems, and ST Pharm. Conversely, 23 companies-including HD Hyundai Mipo, JYP Entertainment, and Hanil Cement-were excluded from disclosure as the National Pension Service's stake in them fell below 5%.

Meanwhile, there is a growing likelihood that the National Pension Service's stock holding limit will be raised. President Lee Jaemyung, during a Ministry of Health and Welfare work report last month, asked, "As domestic stock prices have risen, the National Pension Service has exceeded its stock holding limit. Do we have to keep selling? If the domestic stock market is doing well, wouldn't it be beneficial for the National Pension Service to hold more domestic stocks, thereby ensuring a better retirement for the people?" In response, Kim Sungjoo, Chairman of the National Pension Service, stated, "We plan to convene the Fund Management Committee next year to revise the investment guideline standards."