---
title: "The Korean won continues to weaken, and the National Pension Service of South Korea will adopt a more flexible strategy to stabilize the foreign exchange market"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/269809618.md"
description: "The National Pension Service (NPS) of South Korea will adopt a more flexible hedging strategy to stabilize the Korean won exchange rate amid its weakness. NPS has set the strategic hedging ratio limit at about 15% of global assets and aims to achieve this through methods such as selling U.S. dollar forward contracts. The Korean won has fallen 8% in the second half of this year, and the current exchange rate is close to its lowest level since 2009. Citigroup expects NPS to sell U.S. dollars at the level of 1,470 to 1,475 won per dollar"
datetime: "2025-12-16T03:59:37.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/269809618.md)
  - [en](https://longbridge.com/en/news/269809618.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/269809618.md)
---

# The Korean won continues to weaken, and the National Pension Service of South Korea will adopt a more flexible strategy to stabilize the foreign exchange market

The National Pension Service (NPS) of South Korea will adopt a more flexible hedging strategy amid the weakness of the Korean won, playing a greater role in ensuring the stability of the won exchange rate, as the NPS currently sets the upper limit for its strategic hedging at about 15% of its global assets and achieves this goal through various means, including selling U.S. dollar forward contracts.

Affected by stock outflows and overseas investments, the Korean won has fallen 8% in the second half of this year. The South Korean government is seeking measures to support the won exchange rate, while the NPS, as South Korea's largest institutional investor with approximately $542 billion in overseas assets, often uses hedging and foreign exchange operations to alleviate the pressure of won depreciation.

Today (16th), the won exchange rate remains under pressure, currently down 0.4% to about 1,474.77 won per U.S. dollar, close to its lowest level since 2009. Citigroup expects that under the NPS's new hedging strategy, U.S. dollar sales are expected to occur at the level of 1,470 to 1,475 won per U.S. dollar

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