Citigroup: South Korea pension funds cutting investment may reduce demand for US dollars.

The economist Jin-Wook Kim of Citigroup Group reported that a public pension fund in South Korea has decided to reduce its overseas investments this year, potentially decreasing its demand for US dollars from $56.1 billion to around $37.3 billion. According to the South Korean Ministry of Health, the National Pension Service Corporation has lowered its overseas stock target for 2026 from 38.9% to 37.2%; this department is responsible for overseeing the third largest fund globally, managing total assets of about $990 billion. The National Pension Service Corporation has increased its domestic stock allocation target from 14.4% to 14.9%. This decision by the National Pension Service Corporation may alleviate the recent downward pressure on the South Korean won against the US dollar.