The National Pension Fund Management Headquarters. (Image courtesy of the National Pension Fund)
SEOUL, April 9 (Korea Bizwire) — The National Pension Service (NPS), South Korea’s largest institutional investor, recorded a notable increase of more than ₩8 trillion in the market value of its domestic stock holdings during the first quarter of 2025, buoyed by surging defense and shipbuilding stocks.
According to financial data provider FnGuide, as of April 4, NPS held stakes of 5% or more in 274 listed companies, with a combined market value of ₩136.1 trillion. This marks an ₩8.23 trillion increase from the ₩127.8 trillion recorded at the end of December 2024.
Key drivers behind the gains included sharp share price increases in leading defense firms such as Hanwha Aerospace, Hyundai Rotem, and Korea Aerospace Industries, as well as shipbuilders Hanwha Ocean and Samsung Heavy Industries.
Hanwha Aerospace alone saw a ₩1.29 trillion increase in NPS’s holdings, while Hyundai Rotem and Korea Aerospace Industries contributed gains of ₩433.3 billion and ₩182.2 billion, respectively. In the shipbuilding sector, Hanwha Ocean rose ₩568.7 billion and Samsung Heavy Industries added ₩163.1 billion in value.
Semiconductor giants also contributed to the rally, with Samsung Electronics and SK hynix posting increases of ₩1.33 trillion and ₩443.9 billion, respectively.
The rise in defense and shipbuilding shares is seen as partly influenced by geopolitical shifts and defense realignment under the Trump administration’s second term in the U.S., which has drawn investor attention to these sectors.
Yoo Seung-yoon, an analyst at Eugene Investment & Securities, noted that accelerated timelines for U.S. trainer jet projects and the growing likelihood of Egypt’s FA-50 jet acquisition have bolstered the outlook for Korean defense exporters. Although the second-phase contract for Poland’s K2 tanks has been delayed, Yoo stressed that local production adjustments are underway and there is no cause for alarm.
He also pointed to a shift in global shipbuilding orders toward South Korea, driven by Washington’s increasing scrutiny of Chinese shipyards.
Not all sectors shared in the gains. Valuations of Samsung SDI, Hyundai Motor, Kia, and LG Energy Solution declined by between ₩2.7 trillion and ₩3.1 trillion, reflecting mixed performance across the broader market.
In the first quarter, NPS also added new large-stake holdings in several listed firms including HMM, POSCO DX, Doosan Robotics, Hotel Shilla, and YG Entertainment. Conversely, it reduced its ownership in companies such as Shinsegae Food, Hansol Paper, Jin Air, and Samyang Holdings, dropping below the 5% disclosure threshold.
M. H. Lee (mhlee@koreabizwire.com)
