The National Pension Service (NPS) posted record investment gains of 231.6 trillion won ($161 billion) in 2025, boosted by a sharp rally in Korean stocks that sent the local market soaring.

NPS Investment Management lifted the fund’s total assets to 1.46 quadrillion won, according to the service’s management arm.

The NPS fund’s assets rose from 1.21 quadrillion won in 2024 to 1.46 quadrillion in 2025, while the annual return reached 18.82 percent. Since the fund was established in 1988, its cumulative return averaged 8.04 percent a year.

The 231.6 trillion won in gains was 4.7 times the annual amount paid out in pensions at 49.7 trillion won, meaning the fund earned roughly five years’ worth of payouts in a single year.

The 2025 performance also stood out compared with other major pension funds overseas, with Japan’s Government Pension Investment Fund posting a 12.3 percent return and Norway’s sovereign wealth fund posting 15.1 percent, while a major Dutch pension fund logged a negative return of 1.6 percent.

The strong showing was largely driven by the Kospi, which rose 77 percent in 2025, the biggest gain among major stock markets worldwide. By asset class, domestic equities delivered the highest return at 82.44 percent, as a surge in technology shares tied to AI and semiconductors, along with expectations over policies to invigorate capital markets, helped lift the overall portfolio.

Foreign equities returned 19.74 percent. Solid earnings from large-cap tech stocks focused on AI helped offset uncertainty stemming from U.S. tariff policies, according to the NPS Investment Management.

Bond investments also generated gains. Domestic bonds returned 0.84 percent, while overseas bonds returned 3.77 percent. Domestic bonds swung amid expectations of an economic recovery following benchmark rate cuts, while overseas bond prices rose as yields fell on U.S. rate cuts and concerns about slowing growth.

Alternative investments returned 8.03 percent, reflecting higher valuation gains and realized profits from the sale of some assets.

“The National Pension Service set a new all-time high and delivered one of the top performances among global pension funds last year, largely thanks to the rise in the domestic stock market,” said Kim Sung-joo, the chairman and CEO of the National Pension Service. “It was also the result of continued improvements to infrastructure, including rigorous risk management, a more diversified asset allocation and an improved performance-based compensation system.”

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