Insiders: The Korean National Pension Corporation plans to increase the long-term foreign exchange hedging ratio.

According to sources familiar with the negotiations between the National Pension Service of Korea and the government and central bank, NPS will focus on increasing its strategic hedging ratio in the long term to help stabilize the weak Korean won. As the world's third largest public pension fund, NPS typically does not hedge its overseas assets to maximize gains from a strong dollar, but reserves the right to use rule-based tools to hedge up to 15% of overseas assets tactically and strategically during periods of sharp exchange rate fluctuations. One source said, "There is consensus on three points: the necessity of increasing the strategic hedging ratio in the long term, accelerating the issuance of foreign currency bonds, and evaluating fund performance methods."