$JPY

Did Korean Chaebol Follow This Advice Given 2.5 YEARS AGO?

Somehow, I Doubt It
http://www.seoulgyopoguide.com/?p=482

Academics Are Now On Board
In Korea, the Samsung Economic Research Institute is probably the most well-know economic think tank. This guest post recently appear on FT’s blog, which suggests that the Yen’s decline has not yet hit Korea. I would totally disagree with this. The disruption is here, the result is global volatility, equity markets are higher than at any point over the past year, the KOSPI is flat at best. On the flip side, there are those that would have borrowed in JPY from Korea, and they will benefit (like plastic surgeons), or real estate investors. To what extent they have benefited is unknown, but it is there.


Tale of Three Pictures: Nikkei, KOSPI, and JPY/KRW

Toldya

This blog has taken some grief for its analysis regarding the Korean Won, the Japanese Yen, and the fact that Korean chaebol have done well in no small part due to the incredible Yen strength.

Let’s take a look, shall we?

The KOSPI hasn’t moved over this last two years.

Chart forKOSPI Composite Index (^KS11)

Now, this is the Nikkei (Japanese stock market), which is now at a 5-year high.

Chart forNIKKEI 225 (^N225)

And now, the punchline:  this is the KRW/JPY exchange rate.  The lower the number, the stronger the Korean Won, compared to the Japanese Yen.


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