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National Pension Service Adjusts Hedging Amid Won's Decline

3/30/2026

34 6 Full Breakdown

Summary

Story summary

Chairman Kim Sung-joo of the National Pension Service says the won's depreciation prompts an adjustment to its hedging.
Kim says dip to 1,500 won per dollar is not a new normal and targets the low 1,400s.
The NPS explores options, including foreign currency bonds, to stabilize the currency, while the Iran war affects returns.
The government seeks profitability and currency stability, which may require selling dollar assets at a loss.

History

Historical Context

The 1997 Asian financial crisis began when Thailand abandoned its fixed exchange rate, leading to a regional downturn that severely impacted South Korea. The won depreciated significantly, prompting a $58 billion IMF bailout and extensive reforms in financial regulations. Today, Chairman Kim Sung-joo's comments on the won's decline to 1,500 per dollar highlight ongoing concerns about currency stability and economic resilience.

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Story summary

Chairman Kim Sung-joo of the National Pension Service says the won's depreciation prompts an adjustment to its hedging.
Kim says dip to 1,500 won per dollar is not a new normal and targets the low 1,400s.
The NPS explores options, including foreign currency bonds, to stabilize the currency, while the Iran war affects returns.
The government seeks profitability and currency stability, which may require selling dollar assets at a loss.

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