The National Pension That Undermined Its Own 'Rebalancing Principle' [On the Scene] (January 27, 2026)

Rebalancing is not a mere trading rule; it is a safety valve for the operation of the National Pension.

By excluding market forecasts and restoring the target allocation whenever it drifts away, this approach has locked in some gains during upswings and enhanced diversification during downswings, defending long-term returns.

But this decision has temporarily switched off the "profit-taking" function during bull markets. While the index is rising, reduced selling volume may make it look as though the market burden has eased, but in a correction phase, the fund could face a downturn while still holding an elevated domestic-equity weighting.

If, once the suspension ends and rebalancing resumes, the volume of adjustment sales increases, this could also amplify volatility.

The decision to lower the target weighting for overseas equities could also translate into risk down the road.

The National Pension has, up to now, made increasing overseas investment to offset the limits of the domestic market a core axis of its medium- and long-term asset allocation.

In a phase where the won is weak and the burden of raising foreign currency is heavy, moderating the pace of overseas investment can act as a buffer that eases pressure on the exchange rate and on supply and demand, but the increased exposure to domestic stock market volatility remains a burden.

The purpose of the National Pension is neither to prop up the stock market nor to defend the exchange rate, but to "guarantee the public's old-age income." If precedents accumulate of halting principles because of market conditions, the fund risks being seen not as rule-based management but as a "policy tool" that sways with circumstances.

The Fund Management Committee should not simply leave the word "temporary" on record; it must first present clear criteria for ending the suspension and a structure of accountability.

https://n.news.naver.com/article/021/0002766759?sid=101