The author is an analyst of NH Investment & Securities. He can be reached at sw.kang@nhqv.com. -- Ed. In 2011, Bernanke defended QE2, arguing that supply-side inflationary pressures were temporary and that consumption would slow in response to rising commodity prices. We believe that the current Fed
Capital outflow from the South Korean stock market is accelerating after the 10-year U.S. Treasury yield exceeded the psychological barrier of 3%. The pace is even faster than during the inflation tantrum in February this year.On April 25, foreign investors posted a net sale of 766.9 billion won (US
Moody’s adjusted its sovereign credit rating for Korea to Aa2, the highest ever for Korea, on Dec. 19.Under the circumstances, some economists predict that at least some funds flowing out of emerging economies can come back to Korea as they did in May 2013, when former Federal Reserve Chairman Ben B
With the U.S. Fed expected to raise interest rates in the middle of this month, economic experts are predicting that the change will have a negative impact on the Korean economy, although the signal of a better U.S. economy will result in less uncertainty. Korea is likely to face mounting pressure t
South Korea's monthly current account surplus reached the third highest in history in March, extending its surplus streak to its 37th straight month, data showed. This is largely due to the decreased amount of related imported items from the fall in international oil prices. However, some expres
State-owned enterprises (SOEs) and private-sector companies are in the face of an ongoing domestic economic recession and an increasing call for restructuring. At the same time, they are compelled to redeem a large amount of foreign loans by procuring more foreign funds. More than 40 trillion won (U
Choi Hee-nam, director of the International Financial Policy Bureau of the Ministry of Strategy and Finance, emphasized that macroeconomic measures should come into play to cope with increasing capital market uncertainties at an international conference held at the Westin Chosun Hotel in Seoul on Ja
The top official of Korea’s central bank expressed doubts about the possibility of bitcoins developing into non-legal currency.The Bank of Korea (BOK) Governor Kim Choong-soo on December 12 said at a press conference that although it is hard to talk about the future of bitcoins, it may be difficult
Financial market experts are paying keen attention with the reduction of quantitative easing (QE) around the corner. The won-dollar exchange rate plunged while the stock price index soared on September 9 in Korea, which is considered to be safer than other emerging economies. The Fed is expected to
Volatility in the Korean stock market is on the rise due to external factors such as foreign investors taking their money out from Korea-related funds. Meanwhile, concerns over a possible earnings shock for the second quarter of this year are causing investors to take a low profile. The market, whic
The QE tapering has been a buzzword for markets around the world since late May.As debates heat up, the Korean stock market pulled back below the 1,800 level last month. But stocks are now extending a sustained rebound as related fears recede.Was the Fed QE tapering something that markets have not e
Financial markets recovered from the “Bernanke Shock” in about one month. Indicators in stock, bond, and exchange markets that were rattled after Federal Reserve Chairman Ben Bernanke’s remarks on June 20 that Washington would reduce its bond purchases have recovered to previous levels. Since his re
Federal Reserve Chairman Ben Bernanke mentioned the monetary policy for exit strategy in the end. Korean economic experts expressed their concerns over possible short-term volatility in the financial market while predicting that the recovery of the US economy would act in favor of the export-drive
WITH the global financial crisis slowing down, countries are looking after their own interests, and moral issues have been raised on Wall Street. The G20 collaboration is staggering with protectionism gaining influence and talks over an exit strategy going nowhere. Moreover, an insider trading scand