Korea’s $1 Trillion Pension Fund Eyes FX Bond as Won Swings

South Korea’s National Pension Service is weighing options including issuance of foreign-currency bonds to diversify its financing in the face of rising exchange-rate volatility.

NPS, which managed 1,437.9 trillion won ($1 trillion) as of the end of November, is consulting external organizations to study the feasibility of such issuance, Chief Executive Officer Kim Sung-joo said at a briefing on Thursday, adding that amendments to the National Pension Act would be required before any foreign-currency bonds could be sold.