Korea’s Pension Fund NPS Expands Currency Hedging to Bolster Won

South Korea’s National Pension Service, one of the world’s largest pension funds, is revising its rules to permit greater foreign‑exchange hedging as it seeks to ease pressure on the won.

The $1 trillion fund will scrap a long-standing 15% cap on forex hedging, aiming for greater flexibility during periods of market volatility, according to a Tuesday statement from the Ministry of Health and Welfare, which oversees the NPS. The 15% level will instead serve as a baseline ratio, with room to adjust up or down as needed.