South Korea Financial market

South Korea Financial market

It’s quite obvious to explore an alien country on travel. I love to explore the financial condition of the place when I travel.

I have penned down some important aspect of the financial market in South Korea.

Korea region is divided into North and South. North Korea is banned country (as per United Nations) and it has historical problems with South Korea. The main reason is Communist to Capitalist conversion of South Korea.

South Korea is one of the developed countries in Asian continent. It’s due to the benefits of capitalistic approach and also it’s a key ally of USA. Traces of USA development impact can be found here.

South Korea is considered to be one of the world's most successful economies, which was the second fastest growing economy in the world for over four decades.

The present global crisis has thrown out many theories. One of the theories going around is that the world power is shifting from USA & Europe nations to Asian regions. If true then China India along with South Korea should provide leadership to the new world.

The currency of South Korea is Won. 1 Dollar is roughly equal to 1300 Won depending on the market conditions. Korean Won has been constantly devaluated due to Korean War, financial crisis etc. The devaluation of the currency is directly contradicted with the development of the country. I would be grateful if someone explains me this contradiction.

Important companies are Samsung, LG, Hyundai, Posco etc.

Samsung is world wide leader in technology. It’s ranked second in mobile industry whereas it’s ranked one in LCD television industry. It has an IC foundry and world’s majority of memory solutions are fabricated here. Samsung Corporation has won the contract to build the world's tallest building (the Burj Tower in Dubai).

LG follows Samsung in electronics industry. LG is ranked three in mobile industry. These 2 companies along with Japanese companies are ruling the electronics industry.

South Korea's largest automaker, Hyundai Motor Company and its subsidiary Kia Motors are the fifth largest car groups in the world.

Posco is the fourth largest steel producer in the world. Posco is proposing to set up a 12-million-tonne steel plant envisaging largest foreign direct investment in India of Rs 52,000 crore at Paradip in Orissa.

South Korea is one of the favorable destinations for ship building in the world.

South Korea's "big three" shipbuilders, Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering, dominate global shipbuilding, with Hanjin Heavy Industries also being a significant presence.

The stock market index of South Korea is called KOSPI (Korea Composite Stock Price Index). KOSPI follows the global movement of stock market all over the world.

It’s truly a “Coupling of Markets” all over the world. Whenever I come late to the office I look at the display screen in the elevator where I can get info on Korean Won vs. Dollar. If Won is high against dollar then I assume KOSPI is down, When Kospi is down then our Sensex should also be down!!! Similarly if Won is lower then Sensex will be higher.

The assumptions are true for most of the time clearly indicating that truly we are living in a GLOBALIZED VILLAGE.