South Korea Rebuts Bloomberg Opinion Column Calling Market ‘Uninvestable’

FSC Says It Has No Concerns

South Korea’s Financial Services Commission issued an official rebuttal to a foreign media column that described the country as uninvestable.

In a statement on the government’s position on the domestic stock market released late on August 4, the FSC said there was “absolutely no concern” that South Korea would be viewed as uninvestable at a time when the country is emerging as an irreplaceable supply-chain hub and investment destination in the global artificial intelligence market. The regulator added that the column was based on figures with unclear grounds.

The statement responded to Bloomberg Opinion columnist Shuli Ren’s recent piece, “South Korea is Becoming Uninvestable, Too.”

The FSC said the column cited some statistics incorrectly, including the number of margin liquidation accounts. Forced liquidations averaged about 3,000 accounts a day in June, while the column cited 360,000 accounts, according to the regulator. It added that the source of that figure could not be confirmed.

The commission also rejected the broader economic assessment, saying South Korea’s economy is showing stronger-than-ever fundamentals in indicators such as gross domestic product growth and the current account balance.

It added that earnings estimates for Korean companies have risen above levels seen when stock prices were at their peak, driven by expectations for the AI and semiconductor industries. Many domestic and foreign investment banks are also placing greater weight on South Korea’s solid growth prospects, the FSC said.

Addressing increased volatility in the local stock market since June, the FSC said it stemmed from a combination of factors. The market is also seeing signs of a recovery in investor sentiment, it added.

The commission also said concerns over leveraged products tied to single stocks have stabilized since follow-up measures were introduced.

The FSC said it is doing its utmost to manage volatility and plans to keep addressing short-term swings while consistently pursuing capital-market reforms aimed at strengthening market resilience and growth potential.

Kim Su-young, Hankyung.com reporter swimmingk@hankyung.com