Nvidia Scandal Hits South Korea Pension Fund
Analysts say the scandal of Jensen Huang, whose standing is already severely shaken by an alleged affair with a woman suspected of being a Chinese spy, compounded by yet another affair with a female executive, has disastrously splattered onto South Korea.According to the stock holding report submitt
According to the National Pension Service's stock holding report submitted to the United States Securities and Exchange Commission, the pension fund held a significant 50,834,621 shares of Nvidia as of the end of June. This results in an estimated current valuation of 11.78 trillion won ($8.82 billion) for the shares, marking a severe 25.3% or 3.982 trillion won decline since June.
The decline in Nvidia's stock price is primarily attributed to Jensen Huang's scandal, which involves allegations of affairs with a Chinese spy suspect and a female executive. This has led to a 6.9% drop in Nvidia's stock price from Nov. 6 to Nov. 11, resulting in losses of over $656 million for the National Pension Service alone. The scandal further escalated to implicating Vice President Kimberly Powell, causing Nvidia's stock price to plunge by over 8% during after-hours trading.
While Nvidia is the largest single stock in the National Pension Service's foreign portfolio, indirect investments through exchange-traded funds could have a substantially larger impact. Analysts predict that the pension fund's direct and indirect losses may be even more catastrophic than these figures suggest.
There are concerns that if Jensen Huang is dismissed from his position, it could cause further volatility in the pension fund's Nvidia holdings. The controversies surrounding Nvidia also pose risks to domestic semiconductor companies, as the National Pension Service holds stakes in Samsung Electronics and SK hynix, which supply high-bandwidth memory to Nvidia.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
