National Pension Service Focuses on Accumulating Shares in Securities, Petrochemicals, and Cosmetics
As stock price volatility has increased, interest is growing in which stocks the National Pension Service has purchased.
The largest institutional investor in South Korea, the National Pension Service, significantly expanded its holdings in the securities, petrochemicals, and cosmetics sectors during the first quarter of this year. Notably, it has also made substantial investments in high-dividend sectors such as banks and REITs (Real Estate Investment Trusts), attracting attention.
According to the Korea Exchange, the National Pension Service raised its stake in Korea Financial Group, the parent company of Korea Investment & Securities, from 9.73% to 11.80% during the first quarter, and also increased its share in Mirae Asset Securities by about 1 percentage point.
Large securities stocks are expected to improve their performance due to the expansion of overseas stock trading and financial product sales fees, as well as expectations of interest rate cuts. Accordingly, the share price of Korea Financial Group has surged over 16% so far this year, while Mirae Asset Securities continues to set new record highs.
Additionally, the National Pension Service expanded its holdings in petrochemical stocks despite a poor market outlook. It increased its stake in LG Chem from 7.60% to 8.64%, and Kumho Petrochemical from 9.72% to 10.60%.
Lotte Fine Chemical also saw its stake increase from 7.86% to 8.89%. This appears to be a bet on value recovery supported by government policies and a market rebound.
The National Pension Service has also expressed interest in K-beauty, which has received favorable reviews in overseas markets. It expanded its stake in Amorepacific from 6.40% to 7.42%, and raised its share in the ODM (Original Design Manufacturer) specialist Korea Kolmar from 11.84% to 13.47%.
Meanwhile, brokerage firms, which have a shorter investment horizon than pension funds, focus on stable cash income by holding high-dividend stocks for an extended period.
Korea Investment & Securities has chosen Industrial Bank as a representative long-term holding, while it has also held shares in Woori Financial Group and NICE for a long time.
Samsung Securities has a high proportion of holdings in REIT stocks such as Koramco Delta One REIT, while Mirae Asset Securities has invested the most money in Naver. An evaluation gain has occurred following the stock swap with Naver.
Brokerage firms often hold various stocks for the long term as part of relationship management for investment banking (IB) services, such as IPO underwriting.
Mirae Asset Securities holds several stocks including Sanil Electric, while Kiwoom Securities and KB Securities also maintain long-term holdings in various listed companies.
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