The sharp weakness of the Korean currency against the U.S. dollar is not a sign of a “financial crisis” in the traditional sense, but it is a significant concern because of its implications for social and economic cohesion, the country’s top monetary policymaker said Wednesday. Bank of Korea (BOK) Gov. Rhee Chang-yong said the Ministry of Health and Welfare’s recent decision to factor currency dynamics into the operation of the National Pension Service (NPS), the state pension fund, represents meaningful progress. He added that the NPS needs strategic ambiguity, keeping the beginning and end of its currency hedging undisclosed, to temper expectations about the currency’s trajectory. “Korea is currently a net external creditor, so [the] possibility of a sovereign default accompanied by a series of financial entity closures is low,” Rhee said during a press conference at the bank's headquarters, Wednesday. However, the weak won has heightened inflation concerns by driving up import prices, placing additional strain on households. Importers have also been affected, particular