Success of Leveraged South Korea ETF Hinges on US-China Trade Deal

The capital markets got a reprieve from the ongoing trade wars between the United States and China as U.S. President Donald Trump and Chinese president Xi Jinping agreed to cease fire on their tariff-for-tariff battle last week. As part of the agreement, both nations agreed to withhold imposing further tariffs on each other for 90 days while they work out a firm, ironclad deal to start 2019.

In the meantime, the troubles are mounting for South Korea as The Malaysian Reserve reported that unemployment in the country is on the rise. According to the report, “while minimum wage in the country has increased by 16% at the turn of this year and boosted domestic consumption, President Moon Jae-in’s policy has backfired as small businesses struggle to afford the mandatory wage hikes. As a result, workers are laid off to maintain costs.”

South Korea will certainly be watching how trade deal negotiations unfold as will the rest of the emerging markets–a permanent trade deal could certainly give the country and KORU the boost it needs.

Related: South Korea ETF: A Buy the Dip Opportunity

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