South Korea Adjusts Pension Strategy to Support Local Currency Stability
South Korea's pension fund lowered its foreign stock targets to stabilize the won. The policy shift aims to reduce dollar demand and support domestic markets.
洞察:
South Korea's welfare ministry announced on January 26, 2026, a significant shift in the investment strategy of the National Pension Service (NPS) to address currency volatility in South Korea 
KR. Following an NPS management committee meeting, officials lowered the target ratio for foreign stock holdings from 38.9% to 37.2% and raised the domestic stock weighting from 14.4% to 14.9%, with the changes effective by the end of 2026. The South Korean Won vs US Dollar responded immediately to the policy shift, strengthening 2% to 1,433.3 per dollar and reaching its highest level since December 31.
KR. Following an NPS management committee meeting, officials lowered the target ratio for foreign stock holdings from 38.9% to 37.2% and raised the domestic stock weighting from 14.4% to 14.9%, with the changes effective by the end of 2026. The South Korean Won vs US Dollar responded immediately to the policy shift, strengthening 2% to 1,433.3 per dollar and reaching its highest level since December 31.Welfare Minister Jeong Eun-kyeong jeong eun kyeongstated that the decision follows an unprecedented rise in the domestic stock market and persistent weakness in the local currency. Prior to this intervention, the won had hovered at its weakest levels since 2009. The Korea Composite Stock Price Index has risen 17% so far in January 2026, following a historic 76% gain in 2025, which marked its biggest annual increase since 1999. President Lee Jae Myung lee jae myungnoted that authorities expect the South Korean Won vs US Dollar to strengthen toward the 1,400 per dollar level within the next month or two.
