Korea's $1 Trillion Pension Fund Hits Record Gains on Kospi Rally

• South Korea’s National Pension Service (NPS) achieved its strongest-ever annual return in 2025, driven by a semiconductor and AI-fueled stock rally.
• The fund, managing $1.02 trillion, posted an 18.82% return for the year, marking a third consecutive year of record gains and surpassing its previous 15% high.
• Domestic equities led the performance with an 82.44% surge, while overseas stocks returned 19.74%.
• NPS re-calibrated its 2026 asset allocation, increasing target exposure to domestic shares and trimming a planned reduction in overseas equities by $20 billion.
• The benchmark Kospi index climbed over 45% this year to surpass 6,000, following a 75% advance last year, making it a top global performer.