The South Korean economy and exchange traded fund (ETF) are at the mercy of the upcoming presidential election. Mr.Lee Myung-bak, the former mayor of Seoul, Korea, is most likely to win the upcoming South Korean election on December 19. Carl Delfeld for ETFXRAY reports that his agenda is pro-business, and includes tax-cutting, which is great for their stock market.
The country is facing an unsettling and dull outlook for economic prospects. It lacks the confidence and security to embrace a market economy. The country’s growth rate has fallen some to 4.5%. Faster growing countries such as Brazil and India have pushed the country out from the 11th slot to the 13th.
iShares MSCI South Korea (EWY) roughly mirrors the stock market capitalization, with Samsung, POSCO, KEPCO, and SK Telecom making up around 50%. EWY is up 25% year-to-date.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.