South Korean Ministry of Finance: will work together with National Pension Fund to take action to stabilize the South Korean won.

As the South Korean won fell to near a 16-year low earlier this week, the South Korean government promised to take coordinated action with the state-owned National Pension Service (NPS) to stabilize the won exchange rate. The South Korean Ministry of Finance stated on Friday that the government will closely discuss with major market participants including the National Pension Service and exporters to prepare relevant measures. Prior to this, South Korean Finance Minister Koo Yun-cheol met with South Korean central bank governor Rhee Chang Yong and other financial regulatory agencies. South Korean government officials expressed concerns about the increasing uncertainty in the foreign exchange market, stating that the continued imbalance in residents' overseas investments may strengthen expectations of a weakening won. They unanimously agreed on the need to actively use all available tools to address the situation. Data shows that global funds have sold around $4.6 billion worth of South Korean stocks. With capital outflows from the stock market and increased residents' overseas investments, the Korean won plummeted nearly 4% in this quarter, becoming the second-worst performing currency in Asia after the Japanese Yen, putting continued pressure on the South Korean government to intervene. The statement from the Ministry of Finance on Friday pushed the won higher, making it the currency with the largest gain in Asia for the day. Additionally, the South Korean benchmark stock index dropped 2.8% at the opening on Friday, but recovered some lost ground after the Ministry of Finance's statement. As the largest institutional investor in South Korea, the National Pension Service often helps alleviate won pressure through hedging and forex operations, such as selling US dollars to buy won from January to May this year. Wee Khoon Chong, Senior Market Strategist at BNY Mellon Investment Management, stated, "The return of the National Pension Service will support the won and help correct its current misalignment compared to other Asian currencies."