Pension funds including South Korea's National Pension Service net purchased ₩68.4 billion in the securities market from early July through July 24, according to Korea Exchange data released July 26. This marks the first monthly net purchase in 2026, reversing a six-month selling streak from January through June. The shift occurred as NPS resumed rebalancing (asset allocation adjustment) this month following the expiration of its moratorium in late June, with securities industry analysts attributing the buying pattern to recent sharp market declines that naturally reduced domestic stock weightings in the fund's portfolio.
Pension Funds End Six-Month Selling Streak in July
Pension funds recorded net sales in the securities market every month from January through June 2026. Monthly net selling volumes were: January (₩1.89 trillion), February (₩681.6 billion), March (₩764.8 billion), April (₩896.1 billion), May (₩2.16 trillion), and June (₩2.34 trillion).
During the first half of the year, net selling days exceeded half of all trading days each month. In July, net selling occurred on only 6 trading days through July 24. With 5 trading days remaining until month-end, the possibility of returning to net selling exists, though securities industry sources predict any such selling would remain limited in scale.
SK Hynix Tops July Net Purchase List at ₩425.8 Billion
SK Hynix ranked first among net purchased stocks in July with ₩425.8 billion, marking the second consecutive month as the most-bought stock. SK Innovation placed second with ₩224.7 billion in net purchases, followed by S-OIL (₩174.4 billion), DB Insurance (₩109.4 billion), Celltrion (₩95.3 billion), and Korean Air (₩89.9 billion).
SK Square led net sales at ₩575.7 billion. Samsung Electro-Mechanics ranked second with ₩313.6 billion in net sales, followed by Samsung Life Insurance (₩123.8 billion), LG Innotek (₩111.9 billion), and Samsung Electronics (₩111.5 billion).
NPS Officials Dismiss Large-Scale Selling Concerns
Market concerns emerged after NPS's domestic stock rebalancing moratorium ended in late June, with projections of potential selling pressure reaching ₩74 trillion. NPS Chairman Kim Sung-joo stated that "large-scale selling in a short period cannot occur." Minister of Health and Welfare Jeong Eun-kyung stated that "even if rebalancing occurs, the operation process will be closely monitored to minimize market impact."
Securities industry analysts attribute July's net purchase pattern to recent sharp declines in the KOSPI index, which reduced NPS's domestic stock valuation and naturally decreased the domestic stock allocation ratio within the fund's total portfolio.
FAQ
What did Korean pension funds do in the securities market in July 2026?
Pension funds including National Pension Service net purchased ₩68.4 billion in the securities market from early July through July 24, according to Korea Exchange data released July 26. This reversed six consecutive months of net selling from January through June 2026.
Which stock did pension funds purchase most in July?
SK Hynix ranked first with ₩425.8 billion in net purchases during July, marking the second consecutive month as the top purchased stock by pension funds.
How did NPS officials respond to concerns about large-scale stock selling?
NPS Chairman Kim Sung-joo stated that "large-scale selling in a short period cannot occur," while Minister of Health and Welfare Jeong Eun-kyung stated that "even if rebalancing occurs, the operation process will be closely monitored to minimize market impact."
