South Korea forms new body to oversee NPS foreign investments and FX risks

With 44% of its assets tied to the stock market today, the NPS now faces tighter scrutiny. Can this new body prevent FX volatility from threatening retirees’ futures?

, and Administrator

2025 November 27 . 1:04 AM

1 min read

It is an edited image. In this image we can see a woman standing and smiling. We can also see the... — It is an edited image. In this image we can see a woman standing and smiling. We can also see the currency notes and also the text and on the left and on the right we can see the black color background.

South Korea forms new body to oversee NPS foreign investments and FX risks

A new consultative body has been established to oversee the National Pension Service’s (NPS) overseas investments and their impact on the foreign exchange (FX) market. The group held its first meeting on Monday, aiming to improve coordination between government ministries and the central bank.

The NPS manages around 1.32 quadrillion won ($901 billion), with 44% of its assets invested in the stock market today. Its large-scale foreign holdings mean the fund’s profitability relies heavily on stable FX conditions.

The consultative group will continue monitoring the NPS’s foreign investments and their effects on the FX market. Its long-term goal is to balance pension fund profitability with market stability. Authorities have signalled readiness to intervene if excessive fluctuations occur.