South Korea has activated a new four-party consultative group as authorities try to rein in the surging won–dollar exchange rate.

The finance ministry said Monday it had convened the first meeting of a joint panel comprising the ministries of finance and health, the Bank of Korea and the National Pension Service to assess how the pension fund’s expanding overseas investments are affecting the forex market.

Officials signalled they will explore ways to balance the fund’s returns with currency stability, including potential adjustments to the NPS’s hedging strategy.

The move comes as the won has climbed past one-thousand-470 per dollar, with the government arguing that the pension fund’s structural dollar demand is amplifying volatility.

Speculation is growing that more active hedging or extended FX-swap arrangements could follow, though critics warn that using pension assets to stabilize markets risks undermining retirees’ long-term returns.

The panel is expected to continue meeting as authorities weigh policy options amid persistent pressure on the currency.