Korea Weekly Kickstart

The KOSPI index experienced a 4% decline this week amid foreign outflows and increased market volatility. Despite this, valuation metrics remain at historically low levels, and earnings outlooks have seen positive revisions.

Key Takeaways

• 1.The KOSPI index dropped 4% amid continued volatility and foreign outflows, with forward P/E reaching the lowest level since the Global Financial Crisis.
• 2.Despite market weakness, corporate earnings have shown resilience with broad upward revisions across most sectors.
• 3.The Korea Equity Risk Barometer (GSSRKERB) has fallen into risk-averse territory, which historically serves as a contrarian indicator for forward-looking returns.

Table of Contents

• Charts of the week: KOSPI Sell-off Pulse Check
• Summary
• Investment flows
• Macro Indicators
• Performance
• Valuations
• Valuation discount relative to Global and Asia regional peers
• Flows
• Currency, rates and commodities
• Korea ERB, Credit and Market Technicals

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