South Korea’s NPS Posts 27.2% H1 Return, Best Since 2022

The NPS's outsized H1 gain, driven by a 107.4% surge in Korean equities, underscores the concentration of its performance in domestic markets—a notable divergence from global pension norms. This result matters for systemic risk watchers, as the fund's scale (1.35T USD) amplifies the impact of home-market volatility on its solvency. The open question is whether this reliance on a single asset class proves sustainable if local momentum cools, especially given the fund's role as a major institutional holder. Watch whether NPS rebalances toward foreign or alternative assets in response to this domestic-heavy outperformance.