Korea's National Pension Service (NPS) loosened its rebalancing discipline as shares rallied: it raised its domestic-stock target to 14.9% in January and to 20.8% in May, widened the permitted range and paused rebalancing through June. When prices fell, the reported value of its stakes of at least 5% in 287 listed companies dropped by about 182 trillion won ($137 billion) between June 30 and Thursday, with Samsung Electronics and SK hynix accounting for most of the decline. The editorial argues that allocation rules should be set in advance and not changed once a correction has begun, and questions the accelerated listing of leveraged ETFs tied to those two chipmakers. Minutes of the committee meetings that approved the changes will not be released until 2030, and the writer urges the NPS to explain the principles it applied.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: [ Editorial ] When rules bend
Read the original on koreaherald.com ↗
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