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Korea’s pension fund suffers loss in investment in 10 conglomerates

South Korea’s state-run pension fund suffered valuation losses from its investment in the country’s 10 major conglomerates due to declines in their stocks, data showed Sunday.

The National Pension Service held an average 7.76 percent stake in the conglomerates at the end of 2018, compared with 6.62 percent at the end of 2017, according to data compiled by, which tracks South Korean conglomerates.


But the value of the NPS’s stock holdings in the 10 conglomerates fell to 66.45 trillion won in 2018 from 80.81 trillion won in 2017, according to the data.

The 10 conglomerates include Samsung Group, whose flagship units include Samsung Electronics Co.; Hyundai Motor Group, the world‘s fifth carmaker by sales; energy and telecom conglomerate SK Group; LG Group, whose flagship units include consumer electronics giant LG Electronics Inc. and LG Chem Ltd., South Korea’s leading chemical company; and retail giant Lotte Group.

The world‘s third-largest pension fund raised its stake in units of Samsung Group to 8.8 percent in 2018 from 6.47 percent a year earlier, but the value of its stock holdings in South Korea’s largest family-controlled conglomerate fell 19.5 percent on-year to 33.31 trillion won.

Samsung Electronics said in a preliminary earnings report earlier this month that its operating profit and sales in 2018 reached 58.9 trillion won and 243.5 trillion won, up 9.7 percent and 1.64 percent, respectively, from a year earlier. The sales estimate is a record-high annual figure.

Still, the value of the NPS‘s stock holdings in Samsung Electronics fell 25.2 percent on-year to 23.97 trillion won in 2018. (Yonhap)