Seoul: The government has established a new consultative body in collaboration with the National Pension Service (NPS) to devise strategies aimed at stabilizing the foreign exchange (FX) market, as announced by the finance ministry. This initiative comes in response to the continued weakening of the Korean won against the U.S. dollar, with the inaugural meeting held on Monday.

According to Yonhap News Agency, the meeting saw the participation of officials from the Ministry of Economy and Finance, the Ministry of Health and Welfare, and the Bank of Korea, alongside representatives from the NPS. The primary aim of the body is to evaluate the effects of the NPS' increasing overseas investments on the FX market and to bolster coordination among the four involved institutions.

The ministry highlighted that the consultative body will persist in discussions to find a balanced strategy that maintains the NPS' investment returns while ensuring FX market stability. The government had previously announced its intention to work with the NPS and major exporters to formulate measures for FX market stabilization.

On Monday, the South Korean won experienced a further decline against the U.S. dollar, reaching a new seven-month low and approaching its weakest point in 16 years. This decline has been attributed to the stock selling activities of foreign investors.