The Financial Supervisory Service (FSS) issued an official statement refuting a Bloomberg column that assessed Korea as "uninvestable."
According to the FSS on August 5th, the agency stated through "The Government's Position on the Domestic Stock Market" that "given Korea's position as an irreplaceable supply chain and investment destination in the global artificial intelligence (AI) market, there is no concern that it will be evaluated as an uninvestable country based on unclear figures."
This is a formal rebuttal to the Bloomberg columnist, Schuli Ren's recent column titled "South Korea is Becoming Uninvestable, Too," which assessed the volatility of the Korean stock market.
The FSS pointed out that "the statistics cited in the column, such as short selling averaging 360,000 accounts in June, are inconsistent with facts" and that "the accuracy of the source is also unclear."
It further explained that "the Korean economy shows a more robust outlook than ever before in terms of fundamentals such as GDP growth rate and current account balance," and that "expected earnings of domestic companies have increased compared to when stock prices were at their peak, driven by expectations for the AI and semiconductor industries."
The FSS added that "many domestic and foreign investment banks are also placing weight on Korea's solid growth potential."
According to FnGuide, a financial information provider cited by the FSS, the earnings forecast for KOSPI-listed companies increased from 930 trillion won as of June 22nd (when the KOSPI reached its peak) to 978 trillion won as of the previous day.
Regarding the increased volatility since June, it explained that "it is due to complex factors and there are signs that investor sentiment is recovering."
The FSS emphasized that "concerns about leveraged products related to individual stocks have also been addressed through supplementary measures, and efforts are being made to stabilize volatility."
It concluded by stating that "while managing short-term volatility, the agency will consistently pursue capital market structural improvements to enhance stock market resilience and growth potential."
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It seems like Mr. Eukwon is scratching his head.
He's probably watching to see if he gets scolded or not.
▶ Original Source: https://news.nate.com/view/20260805n17417
