Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

NPS Announces A Reduction in Asset Allocation in Korean Equities to 14.5% of Assets by 2026

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Cross Asset Strategy

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NPS has been continuing to sell big in Korea in 2021. Having covered Korea for more than two decades, I do not remember NPS selling like it has been in the past two months. As of 28 February, NPS net sold KOSPI for 42 consecutive days. It has been reported that NPS sold nearly 13 trillion won ($11.6 billion) of KOSPI since December 2020. The big selling by the NPS has become one of the biggest stories in the Korean stock market in 2021. 
As of the end of 2020, the Korean equities accounted for 21.2% of NPS' total portfolio. <a href="https://finance.naver.com/news/news_read.nhn?article_id=0003341623&amp;office_id=020&amp;mode=LSS2D&amp;type=0&amp;section_id=101&amp;section_id2=258&amp;section_id3=&amp;date=20210302&amp;page=3" target="_blank" rel="noopener">NPS'</a> goal is to reduce this to 16.8% of its total portfolio at the end of 2021. That is a big drop. In this case, NPS could sell an additional 24 trillion won ($21.4 billion) worth of Korean stocks by the end of 2021, which is nearly twice the amount of Korean stocks that it has sold in the past two months. 
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NPS has been continuing to sell big in Korea in 2021. Having covered Korea for more than two decades, I do not remember NPS selling like it has been in the past two months. As of 28 February, NPS net sold KOSPI for 42 consecutive days. It has been reported that NPS sold nearly 13 trillion won ($11.6 billion) of KOSPI since December 2020. The big selling by the NPS has become one of the biggest stories in the Korean stock market in 2021. 
As of the end of 2020, the Korean equities accounted for 21.2% of NPS' total portfolio. NPS' goal is to reduce this to 16.8% of its total portfolio at the end of 2021. That is a big drop. In this case, NPS could sell an additional 24 trillion won ($21.4 billion) worth of Korean stocks by the end of 2021, which is nearly twice the amount of Korean stocks that it has sold in the past two months. 


NPS Is Selling Big in Korea - Will This Lead to an Underperformance of KOSPI in 2021?