Government oversight limits growth but improved capitalization has left banks better prepared for economic shocks
Both the South Korean won and the stock market have been pummeled over the past year. The former currently stands at around 1,430 to the U.S. dollar, nearly reaching levels last seen during the 2008 global financial crisis. The Korea Composite Stock Price Index (KOSPI) hovers between 2,200 and 2,300, down from a peak of around 3,300 last June.
Taken together, this means Korea is on sale from the perspective of those operating in U.S. dollars. For example, the most popular South Korean exchange-traded fund with international investors, iShares MSCI Korea (ticker symbol: EWY), is down by almost half from a peak of $96 in Jan. 2021 to $50.
Both the South Korean won and the stock market have been pummeled over the past year. The former currently stands at around 1,430 to the U.S. dollar, nearly reaching levels last seen during the 2008 global financial crisis. The Korea Composite Stock Price Index (KOSPI) hovers between 2,200 and 2,300, down from a peak of around 3,300 last June.
Taken together, this means Korea is on sale from the perspective of those operating in U.S. dollars. For example, the most popular South Korean exchange-traded fund with international investors, iShares MSCI Korea (ticker symbol: EWY), is down by almost half from a peak of $96 in Jan. 2021 to $50.
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