Foreign Exchange Authorities Seek Swap Extension with National Pension Service... Regular Inspections of Exporters' Currency Exchange

On the 14th, the won-dollar exchange rate fluctuated around the 1470 won level in the foreign exchange market, and the exchange rate was displayed at a private currency exchange office in Jung-gu, Seoul. 2025.11.14 Photo by Yoon Dongju

The government will conduct regular inspections of export companies' currency exchanges and overseas investment status to stabilize the supply and demand of foreign exchange. In addition, the extension of the foreign exchange swap agreement between the foreign exchange authorities and the National Pension Service is also under consideration.

On the 1st, the Ministry of Economy and Finance announced that, together with the Ministry of Health and Welfare, the Ministry of Trade, Industry and Energy, the Financial Services Commission, the Bank of Korea, and the Financial Supervisory Service, it had decided the previous day to swiftly implement policy measures aimed at stabilizing foreign exchange supply and demand.

First, the government plans to regularly monitor export companies' foreign currency exchanges and overseas investment status, and to develop ways to link these inspections with corporate support measures such as policy funds. Through this, the government aims to manage foreign currency inflows and outflows more closely and to respond more quickly in the event of supply-demand imbalances.

The authorities have also begun detailed discussions on extending the foreign exchange swap agreement between the foreign exchange authorities and the National Pension Service, which is set to expire at the end of the year. The Bank of Korea has been annually renewing a swap agreement in which it lends dollars from its foreign exchange reserves to the National Pension Service, preventing the National Pension Service from sourcing dollars directly from the market for its overseas investments and thereby impacting the exchange rate market.

The Financial Supervisory Service will conduct an on-site inspection of financial companies, including securities firms, regarding the adequacy of investor explanations and protection related to overseas investments by December 1. The Financial Supervisory Service recently held a working-level meeting with foreign exchange managers at securities firms to review their currency exchange practices and made this decision.

The government is also discussing the establishment of a new operational system for the National Pension Service that can balance profitability and foreign exchange market stability, taking into account institutional changes such as the parametric reform of the National Pension Service.