South Korea sounds the clarion call for currency defense! The pension fund "steps up to the front lines" and initiates a flexible hedging mechanism.

According to the Wisdom Finance and Economics APP, as South Korea continues to struggle with the weakening Korean won exchange rate this year, the country's national-level pension fund organization is expected to take on a more important role in the financial system in the future to ensure exchange rate stability. With the Korean won exchange rate (against the US dollar) approaching a 16-year low and the market forming strong expectations of "structural USD shortage/KRW unilateral weakening", the South Korean government has transformed the National Pension Service (NPS) from a "passive large USD buyer" to a "quasi-official foreign exchange market supply and demand regulator", using its large trading volume to correct onshore USD supply and demand imbalances and strengthen the policy signal released by the South Korean government to strive to boost the Korean won.