"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 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 in listed companies in which the National Pension Service holds a stake of 5% or more-thus subject to disclosure-was tallied at 266.1386 trillion won. This marks a sharp increase of 35.48% (69.6944 trillion won) compared to the end of the third quarter last year, when it stood at 196.4442 trillion won.

The nearly 70 trillion won increase in stock valuation within a single quarter was driven by the sharp rise in the stock prices of large-cap "semiconductor twin engines." Samsung Electronics and SK Hynix saw the largest increases in valuation in the fourth quarter, with increases of 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 the stake percentages in both companies remained the same as at the end of the third quarter last year, it is clear that the increase in valuation was primarily due to rising stock prices.

Samsung Electronics, benefiting from a super boom in memory semiconductors, became the first Korean company to record 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 soared by 106.11%.

Following these two semiconductor giants, the stocks with the next highest 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), ranking third to fifth, respectively. Notably, Samsung Epis Holdings was listed on the Korea Exchange on November 24 last year after a spin-off from Samsung Biologics. As a holding company, Samsung Epis Holdings manages stakes in subsidiaries such as Samsung Bioepis and Epis Nexlab, as well as pursuing new investment projects.

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

Meanwhile, there is an increasing possibility 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 rise, the National Pension Service has exceeded its stock holding limit. Should it continue to sell? If the domestic stock market is doing well, wouldn't it be beneficial for the National Pension Service to hold more domestic stocks, thus better securing the public’s retirement?" In response, Sungjoo Kim, Chairman of the National Pension Service, said, "We plan to hold a fund management committee meeting next year to revise the investment guideline standards."