Korean Won's Fall May Prompt Action, Says South Korea's $1 Trillion Pension CEO

• South Korea's National Pension Service (NPS) CEO Kim Sung-joo indicates potential action to stabilize the won amid its weakness against the dollar.
• Kim views the low 1,400s as an appropriate equilibrium for the won, rejecting the 1,500-per-dollar level as a "new normal."
• NPS is in talks with financial authorities on a new framework to improve fund performance and foreign exchange market stability, with proposals expected soon.
• The fund is also reviewing its strategic hedging to help stabilize the won and has internal crisis-response teams due to the Iran war's impact.
• NPS faces challenges from the Iran war and is monitoring vulnerabilities in the global private credit market, while considering issuing foreign currency bonds.