The $200bn (€148bn) South Korean state pension fund, set to plough an extra $59bn into local stock markets over the next five years, is causing concern among the country's fund managers that it will hold too much sway over companies.

The fund's overall holding in the South Korean stock market will rise from about 3% to about 6%, but there are 78 companies where it owns more than 5% of the stock and this number will only rise, local fund managers and economists told Reuters.