Korea's $1.35 Trillion Pension Fund Posts Record 27% Return — With Zero Bitcoin

South Korea's National Pension Service (NPS) posted a record 27.22% investment return in the first half of 2026, driven almost entirely by a historic domestic stock rally tied to the AI boom.

Bitcoin, by contrast, played no meaningful role in that result, exposing a sharp divide between traditional and digital growth assets.

AI, Not Crypto, Drove the Record Gains

The National Pension Service, the world's third-largest pension fund, saw assets under management climb to 1,866 trillion won (~$1.35 trillion) by the end of June. That figure jumped from 1,458 trillion won (~$1.05 trillion) at the end of 2025, itself a record year.

Domestic equities delivered a staggering 107.37% return over the six-month period, the largest single contributor.

The KOSPI index more than doubled between January and June, fueled by heavy AI-related investment and blockbuster earnings from chipmakers. Samsung Electronics and SK Hynix alone accounted for roughly 80% of the fund's unrealized gains during the second quarter.

The valuation of NPS stakes exceeding 5% in domestic companies surged by nearly 190 trillion won (~$137.4 billion) between April and June, the largest quarterly jump in the fund's history.

Foreign equities added 17.81%, also lifted by the AI cycle and strong Big Tech earnings, while alternative investments returned 9.6%. Domestic bonds fell 3% as interest rates climbed. NPS Chair Kim Sung-joo attributed the results to favorable trends across both domestic and international equity markets.