Stock valuation of 287 listed companies with 5% or more stakes held by the National Pension fell from 515.9 trillion won at the end of June to 333.5 trillion won on Oct 15
182.4 trillion won (35.3%) evaporated in three and a half months… largest drop on record
Samsung Electronics and SK Hynix alone dropped 131.9 trillion won, accounting for 72% of total losses
Ahn Cheol-soo asks, 'Whose order was the rebalancing suspension?'… demands submission of closed meeting minutes to the National Assembly
The 2030 generation, who pay insurance premiums from their monthly salaries to the National Pension but have a long time left until they start receiving benefits, are searching for the owner of the vanished 182 trillion won. On the 1st, People Power Party lawmaker Ahn Cheol-soo stated on Facebook that the stock valuation of 287 listed companies held by the National Pension decreased by about 182 trillion won in just three and a half months, urging a thorough investigation into the suspension of the National Pension's rebalancing (asset allocation readjustment) and accountability for those responsible. According to FnGuide data, the stock valuation of listed companies in which the National Pension holds a 5% or greater stake dropped from 515.9293 trillion won at the end of June to 333.5330 trillion won on the 15th of last month, evaporating 182.3963 trillion won (35.3%). This is the largest drop in history since record-keeping began.
The nature of this decline is problematic. Samsung Electronics and SK Hynix alone shed 131.0971 trillion won, accounting for about 72% of the total decrease. This means that concentration in semiconductors, which served as a profit engine during a bull market, turned directly into a concentration of risk during a bear market. Even more surprising is the direction of the investment principles. According to Rep. Ahn, the National Pension suspended domestic stock rebalancing in January of this year and subsequently even raised its target proportion for domestic stocks. The core question right now is whether the decision to delay risk-diversifying sales and increase concentration was appropriate, and how much that decision contributed to the sharp drop in valuation. Of course, a decrease in valuation does not mean a realized loss or an overall fund operation loss.
Suspicions are also rising that verification is being blocked. Rep. Ahn pointed out that although the National Pension Act allows the National Assembly's competent standing committee to request and receive meeting minutes confidentially, the government and the ruling party are delaying this under the excuse of market impact. He retorted, "Is it a government achievement when there is a profit, but an investment secret when valuations plummet?" and "Was there even an order from President Lee Jae-myung?" Rep. Ahn emphasized that if there is a serial wealth destroyer linking the introduction of Samsung-SK Hynix leveraged exchange-traded funds (ETFs) and the suspension of rebalancing, they must be tracked down to the end and held accountable. There is no dispute that the independence of fund management is necessary. However, if the word 'independence' is used as a shield to block the National Assembly's statutory right to verification, that in itself is the signal the market will suspect the most.
The youth generation are the stakeholders of these numbers. The insurance premiums they pay now created a valuation of 515 trillion won, of which 182 trillion won turned into paper numbers in just three and a half months. Rep. Ahn also stressed, "We must strengthen the independence and accountability of fund management so that the National Pension is not abused according to the tastes of the regime," adding, "Discussions on pension reform for future generations must also begin in earnest before it is too late." If it was a rational decision, there is no reason to block the verification of closed meeting minutes. It is not too late to start by opening the meeting minutes.