Korean Job Discussion Forums

[squexx]

From March 2008, a good explanation about what is happening with the won:

http://www.businessweek.com/globalbiz/content/mar2008/gb20080328_528490.htm

...................."So why is the Korean currency defying the trend of major currencies gaining strength against the dollar? The won's decline was touched off by foreign investors dumping Korean shares and bonds to secure liquidity in the face of a global credit crunch. Economist Lee Yoonsok at Korea Institute of Finance, a Seoul think tank, points out that Korea remains one of the most liquid securities markets among emerging economies, making it an easy target for foreign investors trying to secure cash in a hurry.

Those foreign investors who unloaded Korean shares sold the won to bring dollars back home. Overseas investors sold about $13 billion worth of Korean stocks so far this year, forcing the benchmark Kospi index to slide 12%. A 32% gain in the Kospi last year also allowed foreigners to take profits as they sought to secure cash.

Spurring the won's loss was the unwinding of the yen carry trade, where investors borrowed yen to put the money in higher-yielding countries such as Korea, and the reversal of currency hedging by Korean funds that had built won positions after investing in overseas stocks. As the world's equity markets are sold off, these hedges are also being unwound, according to a Morgan Stanley (MS) research report last week.
Higher Oil Prices Creates Trade Imbalance

Another driver of the won's decline: Korea's worsening current account balance, the broadest measure of trade in goods and services. The Seoul government expects Korea, which depends wholly on imports for its oil needs, to post a current account deficit of $7 billion this year against a surplus of $5.9 billion in 2007. "Given the tumult in the global financial market and high oil and commodity prices, the won won't gain strength any time soon," says Park at Hangaram Investment..........."

[Ya-ta Boy]

That's a useful article. Thanks.

I'm hoping my fund manager knows which stocks to buy at this low point so when the KOSPI regains those 32% that I profit by it. He did over the last two years, so I don't think I have to worry.

[Real Reality]

Does this message belong in the General Discussion Forum?

[ernie]

can't live in korea without won!

[Kuros]

This is a good article. *bump*

[hellofaniceguy]

I think part of the reason has to do with the koreans' attitudes....why would any one, business, or country want to invest in korea with all the protesting and anti this, anti that attitude?
They shoot themselves in the foot.

[Ya-ta Boy]

[saw6436]

Yes, healthy Democracies do. But, we are talking about Corea here. Most Democracies think with their laws. Corea thinks with its ignorance.

[Ya-ta Boy]

Both romanticizing your home country and looking cynically at Korea are inaccurate.

[Cheonmunka]

These days resource commodities are in, value addeds are a dime a dozen, every developing country has the technique or is gaining it to mass manufacture. Korea has a lot of competition now.

I was watching the telly last night and there was a major segment about the closures of small manufacturers in Korea - figures like 20% less small businesses than last year. Stats like that are a bit shocking.

I wonder if the economy's going to recede?

[squexx]

[bassexpander]

Who are these socks that come on here spewing the end of life as we know it?

[squexx]

[mole]

[Ya-ta Boy]