The National Pension Service (NPS) of South Korea is preparing to sell up to W74 trillion ($53 billion) in equities if the Kospi index sustains levels above 9,000, according to The Korea Herald.
The conditional divestment strategy signals a significant potential supply overhang for the Korean equity market, which recently breached the 9,100 mark for the first time.
The proposed sale volume represents a substantial portion of the fund's equity portfolio and would be executed gradually to minimize market disruption.
The threshold-based approach allows the pension fund to capitalize on elevated valuations while maintaining a disciplined exit strategy.
Market participants are now assessing whether the Kospi can maintain its momentum against the prospect of such large-scale institutional selling.
This development coincides with record levels of retail trading activity in South Korea, where the number of active stock accounts has reached an all-time high.