National Pension Fund Management Committee amid Won Depreciation and Stock Market Overheating: "Concerns Over Erosion of Independence" (January 26, 2026)

(Discussion on Expanding Domestic Investment and Raising Currency Hedge Ratios Government Representatives Increase from 5 to 6 Following MOEF Reorganization "How Long Can Domestic Equities Continue Rising… Caution Warranted on Potential Damage to Fund Returns")

According to the Ministry of Health and Welfare on the 26th, the National Pension convened its first Fund Management Committee meeting of 2026 on that date to review the overall fund management strategy.

This marks the first time the National Pension Fund Management Committee has held a meeting in January since 2021, five years ago. Unlike the customary practice of holding the first meeting in February or March, the meeting was convened this year even though the settlement of the previous year's accounts had not yet been completed.

It is reported that this meeting will discuss an asset allocation adjustment plan to reduce the proportion of overseas investments and expand domestic investment, along with measures to raise the currency hedge ratio.

(Excerpt)

At this meeting, the number of government representatives increases by one from the previous composition. Following the government reorganization in October of last year, in which the former Ministry of Economy and Finance was separated into the Ministry of Finance and Economy and the Office of Planning and Budget, both vice ministers of the two newly established ministries now participate in the Fund Management Committee in place of the former vice minister of the Ministry of Economy and Finance.

As a result, the total number of Fund Management Committee members increased from 20 to 21, and the number of government representatives rose from 5 to 6. Some quarters have raised concerns that this may somewhat strengthen the government's influence.

(Excerpt)

Conditions in the foreign exchange market, including the high won–dollar exchange rate, are also a major topic of discussion. Previously, the Fund Management Committee determined that there was a need to apply currency hedging more flexibly in response to market conditions, and accordingly established a consultative body comprising members of the Fund Management Committee and the Investment Policy Expert Committee.

Experts point out that the Fund Management Committee, which should prioritize returns and independence above all else, may be susceptible to political considerations.

Yoon Seok-myeong, Honorary Research Fellow at the Korea Institute for Health and Social Affairs (KIHASA),

stated that "the National Pension's investment guidelines stipulate as a principle that foreign currency hedging is not to be conducted,"

and added that "since it is impossible to know how long domestic equities will continue their upward trend, the possibility of damage to pension returns must be carefully examined."

https://n.news.naver.com/article/079/0004108776?sid=102