Group 1 - The Korean National Pension Service (NPS) will play a larger role in ensuring currency stability as South Korea addresses the weakening of the Korean won [1][2] - The NPS management committee announced plans to adopt a more flexible hedging strategy, although details were not specified [1][2] - The NPS will extend its $65 billion foreign exchange swap agreement with the Bank of Korea for an additional year, until the end of 2026 [1][2] Group 2 - The Korean won has depreciated by 8% in the second half of this year due to ongoing capital outflows from the stock market and overseas investments [1][2] - As the largest institutional investor in South Korea, the NPS holds approximately $542 billion in overseas assets and frequently employs hedging and foreign exchange operations to mitigate pressure on the won [1][2] - The NPS's large trading scale significantly impacts the market, and the new measures are expected to alleviate recent imbalances in domestic and foreign exchange supply and demand [1][2] Group 3 - The more flexible hedging policy allows the NPS greater maneuverability to support the won [1][2] - The NPS has set a cap of approximately 15% on the combined ratio of strategic and tactical hedging relative to its global assets [1][2] - Various methods, including selling dollar forwards, will be utilized to achieve this hedging goal [1][2]