Explore the alarming recent decline in the Korean stock market, where over 80% of stocks plummeted. Understand the sector-specific vulnerabilities and the challenges foreign investors face. Will confidence in Korea return amidst global alternatives? Tune in for an insightful analysis.
(p1) The Korean stock market is on shaky ground.
(p2) On November 12, over 80% of the KOSPI and KOSDAQ stocks fell. Among them, a whopping 24% of KOSPI stocks and 34% of KOSDAQ stocks recorded 52week lows.
(p3) By sector, medical precision and pharmaceuticals saw greater declines that day, but these days, the sectors that are falling more are changing every day. There isnt a single sector that isnt experiencing a drop.
(p4) Samsung Electronics PER has continued to decline, reaching 10.7, and its PBR is also below 1. Foreign investors sold a net 350 billion won in just one day on the 12th. This is not just a one or twoday issue.
(p5) Fundamentally, the vulnerabilities of the Korean economy have been exposed. It is being hit hard by high exchange rates, tariffs, and an economic slump. Foreign investors need to regain their confidence in Korea, but with so many alternative investment options like U.S. stocks and Bitcoin, it seems difficult for foreign capital to flow in for the time being. Thank you.
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