The CEO of Korea National Pension Service stated that action may be needed to stabilize the won exchange rate.

The head of South Korea’s largest pension fund said that the Korean won has weakened against the U.S. dollar amid recent market turbulence and that measures may be needed to stabilize the won’s exchange rate.

In an interview on Friday, Kim Sung-joo, Chairman and CEO of the National Pension Service, rejected the claim that the won’s recent slide to 1,500 against the U.S. dollar is a “new normal,” saying that the more appropriate equilibrium range is in the low 1,400s. The won has fallen about 5% against the U.S. dollar since the start of this year, making it one of Asia’s worst-performing currencies.

Kim said the National Pension Service is currently in ongoing talks with financial regulators on a new framework to improve fund performance and enhance stability in the foreign exchange market. He expects the relevant discussions will end soon, and if all parties reach an agreement, the related recommendations will be adopted. He also added that strategic hedging to help stabilize the Korean won is one of the issues under review.

“We also don’t fully understand the reasons behind the won’s continued weakness,” Kim said, adding that the fund manages about $1 trillion in assets. “We have long recognized the need to respond to foreign-exchange volatility, and now everyone agrees that some form of action may be required.”

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责任编辑：刘明亮