Download Full Spring 2008 Market Update
Market Update Spring 2008: Table of Contents
  • Korean households hold far more home equity than US households.
  • Net worth of Korean households has increased even excluding real estate.
  • Household leverage ratio rationalizing trend.
  • This also applies relative to assets and to interest costs.
  • The result is that companies are flush with cash.
  • The average utilization ratio is now at a record high.
  • External assets rise unabated, as Korean companies expand worldwide.
  • While external liabilities are falling.
  • And foreign reserves remain 4th largest in the world, over $260 billion.
  • The domestic economy and China are driving Industrial Production.
  • With private construction leading the way.
  • And machinery orders fill out the picture.
  • Although volumes are softening, export pricing continues improving.
  • Thankfully, the US has fallen to Korea’s third export destination …and will soon be eclipsed by ASEAN.
  • Goldman Sachs finds the new President’s 6% growth promise credible.
  • The earnings of KOSPI-listed companies still expected to improve this year and next.
  • Oil price is a concern, but historically has been bullish for Korean equities.
  • The market has risen dramatically in the 12 months following most Presidential elections.
  • Korean stocks benefit from upgraded ratings, and there are more to come.
  • National Pension will reach KRW 400 trillion by 2012.
  • Its domestic equity allocation will nearly double.
  • Corporate retirement pension funds are also enjoying dramatic growth.
  • Together, this means another KRW 100 trillion into domestic equities.
  • Installment funds continue to rise in popularity.
  • With equities favored enormously.
  • Foreigners buy selectively, but continue to register.
  • Current portfolio
  • Consensus-driven stock selection this year results in superior valuations.
  • As well as outperformance

Fall 2005 Market Update (PDF)
Spring 2006 Market Update (PDF)
Fall 2006 Market Update (PDF)
Spring 2007 Market Update (PDF)
Spring 2008 Market Update (PDF)