According to a report released by Japan's Daiwa Institute of Research on November 11, South Korea's National Pension Service (NPS) faces significant risks from excessive domestic stock allocation and delayed portfolio rebalancing. The institute stated that when a pension fund's presence becomes too dominant in its home market, rebalancing becomes difficult, potentially compromising beneficiary interests. NPS expanded domestic stock holdings during the AI and semiconductor boom but failed to rebalance timely, leading to substantial losses as the domestic market declined. The think tank emphasized that overconcentration on domestic assets—described as becoming a "whale in a pond"—undermines the fund's ability to prioritize insured members' welfare.

View Source

Disclaimer: This content is for informational purposes only and does not constitute investment advice or encourage the buying or selling of crypto assets. It is intended to provide information about industry developments and is not directly related to the services offered by Gate TR. Although information obtained from third-party sources has been carefully reviewed, Gate TR assumes no responsibility for any errors or omissions. Crypto assets involve high risks and may experience significant price fluctuations. Before making any investment decisions, you should assess your financial situation and risk tolerance, conduct your own research, and make decisions independently.