On the Day KOSPI Plunged 12%, Major Player NPS Snapped Up These Stocks

Increased Stakes in Isu Petasys and Youngone Corporation
Over 10% Ownership Suggests Long-Term Investment Goals
Focused on Profit-Taking During the January–February Bull Market

It has been revealed that the National Pension Service (NPS) purchased shares of certain companies on the so-called "Black Wednesday," when the KOSPI index experienced an unprecedented plunge. Even when the index was hitting all-time highs, the NPS actively invested, playing a significant role as a major player in the stock market.

According to an analysis on March 19 of the stockholding reports disclosed on the Financial Supervisory Service's electronic disclosure system from January to early this month, the NPS increased its stakes in Isu Petasys, a printed circuit board (PCB) manufacturer, and Youngone Corporation, an outdoor apparel original equipment manufacturer (OEM), on March 4. On that day, the KOSPI index fell 12.06% from the previous trading day, marking the largest single-day drop in history. The NPS had gradually reduced its stake in Isu Petasys from 10.25% on December 31 of last year to 9.95%, but on March 4, it purchased 75,190 shares, raising its stake back up to 10.06%. Its stake in Youngone Corporation was also lowered from 10.06% to 9.94% during the same period, but by buying 34,325 shares, the NPS increased its holding to 10.02%.

Even on February 26, when the KOSPI hit its all-time high of 6,307.27, the NPS chose to invest rather than take profits. It increased its stake in CJ Logistics from 10.82% at the end of last year to 12.54% by purchasing 391,015 shares that day. The NPS also increased its stake in Vinattech, a secondary battery company listed on KOSDAQ, from 9.81% to 10.08% through additional purchases.

Regarding the purchases that pushed NPS's stakes above 10% in Isu Petasys, Youngone Corporation, and Vinattech, industry observers analyze that the NPS judged these stocks to be worth holding for the long term. There is also speculation that the NPS may use the stewardship code in the future to make its voice heard as a major shareholder.

For CJ Logistics, whose stake already exceeded 10%, some believe that the NPS invested in it as an undervalued value stock, considering that its stock price is low relative to its asset value and profitability, yet it is regarded as the industry's top pick. In fact, CJ Logistics posted an operating profit of 159.6 billion won in the fourth quarter of last year, breaking its previous record. Dohyun Ahn, a researcher at Hana Securities, said, "CJ Logistics' parcel volume is expected to grow by 10% in the first quarter of this year and by 6% for the full year of 2026, which would be the highest growth rate since 2020." He added, "The company's enhanced delivery competitiveness, driven by seven-day operations and automation investments, is a major factor, and we see the potential for continued strong growth as the most positive aspect."

During the bull market in January and February, the NPS appears to have focused on taking profits by selling most of its holdings. Its holdings changed in 22 stocks, and it sold stakes in 14 of them. In particular, it reduced stakes in pharmaceutical stocks such as Yuhan Corporation (-1.02%), Hanmi Pharmaceutical (-0.83%), and Daewoong Pharmaceutical (-0.31%). It also reduced its stake in HMM (-1.01%) and Hyosung Advanced Materials (-1%) by around 1% each. However, there were stocks the NPS bought even during the rally. In addition to CJ Logistics, it increased its stakes in Hyosung TNC (2.12%), AmorePacific (1.05%), and KB Financial Group (1%), all of which are regarded as top picks in their respective sectors. On March 6, as the market rebounded from the record plunge, the NPS also increased its holdings in recent theme stocks such as Hyundai Wia (0.01%) in robotics and shipbuilding, and Hanwha Ocean (0.66%) in the defense industry.

The NPS also signaled more active shareholder engagement by changing its investment objectives. In January, the NPS reduced its stake in KT from 7.67% to 7.05% and changed the objective from "simple investment" to "general investment." This allows the NPS to make shareholder proposals that do not constitute management participation, such as amending articles of incorporation, appointing or dismissing executives, or proposing dividend policies. In contrast, it changed its investment purpose in Hansol Chemical and Hyundai Wia from "general investment" back to "simple investment."

This content was produced with the assistance of AI translation services.