A Study on Defensive Investment Assets for Risk Management of the National Pension Fund (2023)

(Report p. 105)

In the early stages of overseas investment, the National Pension Fund managed currency risk by fully hedging fluctuations in the won–dollar exchange rate; however, reflecting the subsequent expansion in the scale of overseas investment, it has since adopted an open-currency policy.

(Footnote 31)

The National Pension Fund's currency hedging strategy is premised on maintaining an open position with respect to the won–dollar exchange rate, while allowing for limited adjustment of the hedge ratio under specific conditions and for certain asset classes.