韩国财政部：将协同国民年金基金采取行动稳定韩元

Core Viewpoint - The South Korean government is taking measures to stabilize the won's exchange rate in response to its significant depreciation, which has reached a 16-year low, and is collaborating with the National Pension Service (NPS) and other market participants to address the situation [1][4]. Group 1: Government Actions - The South Korean Ministry of Finance announced plans to engage in close discussions with major market participants, including the NPS and exporters, to prepare relevant measures to stabilize the currency [1]. - Government officials expressed concerns over increasing uncertainty in the foreign exchange market and the ongoing imbalance in residents' overseas investments, which may reinforce expectations of further depreciation of the won [1]. Group 2: Market Impact - Global funds have sold approximately $4.6 billion worth of South Korean stocks, contributing to capital outflows and a nearly 4% drop in the won this quarter, making it the second-worst performing currency in Asia after the yen [4]. - Following the Ministry of Finance's statement, the won appreciated, becoming the largest gainer among Asian currencies for the day, while the benchmark stock index initially fell by 2.8% but recovered some losses after the announcement [4]. Group 3: Role of National Pension Service - The NPS, as South Korea's largest institutional investor, often employs hedging and foreign exchange operations to alleviate pressure on the won, having previously sold dollars to buy won during the first five months of the year [4]. - A senior market strategist from BNY Mellon stated that the return of the NPS to the market would support the won and help correct its current misalignment relative to other Asian currencies [4].