Discussed at the 7th National Pension Fund Management Committee Meeting
The National Pension Service is seeking to extend the period of its strategic foreign exchange hedging to help stabilize the foreign exchange market.
Jeong Eun-kyung, Minister of Health and Welfare, is attending and speaking at the National Pension Fund Management Committee held at the Government Seoul Office Annex in Jongno-gu, Seoul on the 24th. 2025.11.24 Photo by Jo Yongjun
The Ministry of Health and Welfare announced on the 15th that it held the 7th National Pension Fund Management Committee meeting at the Government Seoul Office, presided over by Minister Jeong Eun-kyung. During the meeting, the committee discussed the extension of the temporary strategic foreign exchange hedging period for the National Pension Service and ways to set next year’s target for excess returns.
Previously, the Ministry of Economy and Finance, the Ministry of Health and Welfare, the Bank of Korea, and the National Pension Service established a four-party consultative body to coordinate the National Pension Service's profitability with the stability of the foreign exchange market. They have been reviewing various response measures, including the extension of the annual foreign exchange swap agreement-worth up to 65 billion dollars per year-between the foreign exchange authorities and the National Pension Service, which is set to expire at the end of this year.
In her opening remarks, Minister Jeong stated, "In 2026, the global economy is expected to be supported by expansionary fiscal policies and accommodative monetary policies in major countries, while investments related to artificial intelligence (AI) will drive growth." She added, "The Korean economy is also projected to move into a recovery phase after passing its lowest point." However, she noted, "Apart from the semiconductor, nuclear power, shipbuilding, and defense industries, the recovery in other sectors remains weak, and the construction industry is somewhat sluggish, so there are still sources of instability."
Minister Jeong continued, "As of September, the National Pension Service achieved a high return of 11.3 percent, and it is expected to maintain strong returns this year, following the high performance in both 2023 and 2024." She urged, "Please do your utmost to ensure excellent results next year as well." She also remarked, "Setting the target for excess returns can have a significant impact on the fund’s management strategy and overall direction," and requested, "I ask the committee members to share their opinions on the operating conditions, environment, and the long-term direction we should pursue."
Meanwhile, Kim Sungjoo, the newly appointed Chairman of the National Pension Service, also attended the meeting.
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