National Pension Fund Raises Foreign Investment Currency Hedge Ratio to 15% (Comprehensive) (April 14, 2026)
- #국민연금법
(The additional amount subject to currency hedging is reported to be approximately 30 trillion won, entailing a cost of approximately 600 billion won.
Beyond this, losses on foreign exchange gains (!)
and, should foreign-currency bond issuance also proceed, the losses to the National Pension Fund could be substantial.)
The National Pension Fund Management Committee has expanded the currency hedge ratio for the National Pension's overseas investments to 15%.
The Fund Management Committee convened its third National Pension Fund Management Committee meeting on the afternoon of the 14th at the Government Seoul Building, where it deliberated and approved these "Improvement Measures Relating to Overseas Investments."
The Fund Management Committee decided to expand the currency hedge ratio, taking into account, among other factors, the increase in external uncertainty arising from recent developments in the international situation.
A currency hedge ratio of 15% on overseas investments will serve as the baseline, and implementation will proceed in a flexible and adaptive manner in accordance with market conditions.
In addition, collaboration with the foreign exchange authorities — including the utilization of swap arrangements — will be maintained during the implementation of currency hedging.
The Fund Management Committee explained: "In an environment of heightened exchange rate volatility, we took into account the need to prevent currency losses that could arise from future changes in the international situation, and furthermore
the necessity of expanding currency hedging in order to mitigate volatility in the National Pension Fund's portfolio and to secure stable foreign-currency funding for overseas investments."
