South Korea’s National Pension Service, the world’s third-largest public pension fund with roughly $1 trillion in assets under management, has stopped its foreign-exchange hedging operations after the won strengthened significantly against the dollar. The NPS uses trigger levels to determine when to hedge its overseas holdings, and effectively waived its hedging requirement after the dollar-won rate fell from above 1,450 to below the mid-1,300s. Its strategic hedging ratio had recently risen from a previous 10% cap to 15%, while a policy restructured in April 2026 gave the fund more flexibility in implementing that baseline. The NPS typically uses dollar forwards or swaps arranged through the Bank of Korea, which supply dollars to the onshore foreign-exchange market and support the won during periods of weakness. With about $530 billion in foreign holdings, suspending those operations removes that dollar supply and can increase net dollar demand from the fund’s overseas investment flows. The NPS also has access to $65 billion in extended currency swap lines with the Bank of Korea through the end of 2026. Market sources indicate hedging would likely resume if the dollar-won rate rises above 1,550. The approach illustrates the broader use of dynamic, trigger-based currency management by large institutional investors rather than fixed hedging ratios applied regardless of market conditions.