Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Who Is Right in the Korean Stock Market? Foreign Investors or Local Retail Investors?

National Assembly Election in South Korea (April 15) - (Part I)

Korea Election 2020: Quick & Dirty Analysis for How to Approach

Thematic (Sector/Industry)

South korea Financials / Thematic (Sector/Industry)

The Stock Market Stabilization Fund in Korea is expected to be launched in the next few days. <a href="http://www.kbanker.co.kr/news/articleView.html?idxno=90437" target="_blank" rel="noopener">Kang Shin-Woo,</a> the former head of Korea Investment Corporation (KIC), has been picked to head up this new Stock Market Stabilization Fund (SMSF), which has been created to stabilize the Korean stock market after it has been devastated by the COVID-19. It is expected that the Stock Market Stabilization Fund in Korea will aim to raise more than 10 trillion won. Overall, it seems that this is one of the ways that the Korean government is trying to form its own "Plunge Protection Team" (PPT) and try to prevent the stock and bond markets from falling excessively. Rather than having the NPS be burdened too much with propping up the market in the event of an excess market downturn, the Korean government has formed the Stock-Bond Market Stabilization Funds to prevent an excessive market collapse.Despite these intentions, one obvious risk is the fact that capital is not free. Rather, it appears that the local banks could face additional risks from the formation of these funds which could potentially negatively impact its important capital adequacy ratios.

The Stock Market Stabilization Fund in Korea is expected to be launched in the next few days. Kang Shin-Woo, the former head of Korea Investment Corporation (KIC), has been picked to head up this new Stock Market Stabilization Fund (SMSF), which has been created to stabilize the Korean stock market after it has been devastated by the COVID-19. It is expected that the Stock Market Stabilization Fund in Korea will aim to raise more than 10 trillion won. Overall, it seems that this is one of the ways that the Korean government is trying to form its own "Plunge Protection Team" (PPT) and try to prevent the stock and bond markets from falling excessively. Rather than having the NPS be burdened too much with propping up the market in the event of an excess market downturn, the Korean government has formed the Stock-Bond Market Stabilization Funds to prevent an excessive market collapse.Despite these intentions, one obvious risk is the fact that capital is not free. Rather, it appears that the local banks could face additional risks from the formation of these funds which could potentially negatively impact its important capital adequacy ratios. 

韓国で10兆ウォン規模の株式市場安定化基金（증안펀드）が発足