National Pension Service Chairman Kim Sung-ju postponed his inauguration ceremony and began his second term by attending the Fund Management Committee (the committee). The committee discussed the National Pension Service's strategic currency hedging plan to respond to the strong dollar.
On the 15th, Kim began his first official schedule by attending the National Pension Service Fund Management Committee held at the Government Complex Seoul upon his official inauguration. Kim's term runs three years through Dec. 14, 2028.
Kim had originally planned to hold the inauguration ceremony that day, but as the committee meeting and other urgent agenda items overlapped, he reportedly postponed the ceremony and attended the committee first. The inauguration ceremony is scheduled for the 17th of this month.
Kim previously served as the 16th chairman (Nov. 2017–Jan. 2020) and has taken the National Pension Service chairmanship for a second time. While serving as a lawmaker in the 21st National Assembly, he was the Democratic Party of Korea floor manager on the National Assembly Special Committee on Pension Reform, and from June to August this year he served as an adviser on the policy planning subcommittee of the Presidential Committee on Policy Planning for the Lee Jae-myung administration.
Meanwhile, the committee on the day reviewed extending the National Pension Service's strategic currency hedge period. A strategic currency hedge means that when the exchange rate rises above a certain level, the National Pension Service sells up to 10% of its overseas asset holdings at a specified price. Implementing this increases downward pressure on the won-dollar exchange rate against the U.S. dollar.
Earlier, as the won-dollar rate threatened 1,480 won, on the 14th Deputy Prime Minister Koo Yun-cheol convened an emergency meeting of related ministers. At the meeting, attended by the Ministry of Health and Welfare and the Ministry of Trade and Industry (MOTI), participants reportedly discussed National Pension Service system reform plans and ways for export corporations to convert their dollar funds.
That day, the won-dollar rate closed at 1,471 won, down 2.7 won from the previous trading day. So far this month, the won-dollar rate has topped a monthly average of 1,470 won, marking a record high since the foreign exchange crisis.