Short comment
Moody's discounted their expectation about the rate of the economic growth in Korea for this year from 2.3% to 2.1%. The rate for next year was also downgraded to 2.2% from 2.5%. The numbers are much lower than those of expectation in Korean government and local institutions.
In fact, the numbers are not surprises at all considering proceeding warnings about global macro economic situation. Korean economy is one of the most dependent countries on global economy. The number of imports and exports is taking 70-80% in the country's total GDP.
Relative to the import-export, the first stuff which comes up in point of regional main industry is semiconductor sector. Even though the Superstars, Samsung Electronics (005930.KS) and SK Hynix (000660.KS), have recovered plunge of shareprices more or less, research analysts of the sector have been strongly insisting that the chips are going through the contraction period already. The problem is not only the specific sector. Other main regional products like petro-chemical stuffs, ship or automobile, are exposed to the risks of trade-war between the US and the rest of the world and contracting global economy, especially Chinese economy.
Like former regimes in the country, Moon administration is also struggling to put the prediction in positive range, but estimation from the outside is giving the cold shoulder to it.
Moody's discounted their expectation about the rate of the economic growth in Korea for this year from 2.3% to 2.1%. The rate for next year was also downgraded to 2.2% from 2.5%. The numbers are much lower than those of expectation in Korean government and local institutions.
In fact, the numbers are not surprises at all considering proceeding warnings about global macro economic situation. Korean economy is one of the most dependent countries on global economy. The number of imports and exports is taking 70-80% in the country's total GDP.
Relative to the import-export, the first stuff which comes up in point of regional main industry is semiconductor sector. Even though the Superstars, Samsung Electronics (005930.KS) and SK Hynix (000660.KS), have recovered plunge of shareprices more or less, research analysts of the sector have been strongly insisting that the chips are going through the contraction period already. The problem is not only the specific sector. Other main regional products like petro-chemical stuffs, ship or automobile, are exposed to the risks of trade-war between the US and the rest of the world and contracting global economy, especially Chinese economy.
Like former regimes in the country, Moon administration is also struggling to put the prediction in positive range, but estimation from the outside is giving the cold shoulder to it.