Core Viewpoint - The National Pension Service (NPS) of South Korea has resumed its strategic foreign exchange hedging operations as authorities intensify efforts to stabilize the Korean won [1][2]. Group 1: NPS Operations - NPS has extended its currency swap agreement and temporary strategic hedging mechanism for another year, which was originally set to expire at the end of this year [1][2]. - Under the arrangement, NPS provides Korean won to the Bank of Korea in exchange for US dollars, alleviating demand pressure on the exchange rate by avoiding the need to purchase dollars in the spot market [1][2]. - The dollars obtained from the Bank of Korea will be used for new overseas investments or to hedge existing assets, effectively making NPS a net seller of dollars, which supports the won [1][2]. Group 2: Currency Performance - In November, the won fell below the significant psychological level of 1450 for the first time since April, and on Tuesday, it reached 1483.6 won per dollar, nearing a 16-year low [1][2]. - In response, South Korean foreign exchange authorities conducted strong verbal interventions, stating that the weakness of the won is "excessive" and that the market will soon see the government's "firm" commitment to stabilizing the foreign exchange market [1][2]. - Following the verbal intervention, the won appreciated by 33.8 won against the dollar, closing at 1449.8 won, marking the largest increase in over three years [1][2]. Group 3: Current Exchange Rate - As of Friday at 11:50 AM local time, the exchange rate was 1431.95 won per dollar, an increase of 17.85 won from the previous day [3].