"KOSPI and Korean Won Undervalued... Yen and Yuan Strengthening Could Benefit Exports" - DS Investment Securities

DS Investment Securities analyzed on the 2nd regarding the domestic stock market, stating, "Currently, the Korean Won and KOSPI might be at their most undervalued state."

Yang Hae-jung, a researcher at this securities firm, explained, "Looking at the currency values against the US Dollar last year for Korea, Japan, and China, the Korean Won depreciated the most significantly," adding, "Despite the sluggish economy, the Chinese Yuan did not depreciate much, and the Korean Won depreciated more than the Japanese Yen."

She continued, "While this could be perceived as a crisis, the depreciation of the Korean Won has been advantageous for exports," and elaborated, "Last year's exports recorded the highest in terms of value."

Researcher Yang pointed out, "Even if it was concentrated in the semiconductor sector, the KOSPI clearly has not reflected this," and noted, "If the Chinese Yuan and Japanese Yen were to turn strong together, it could be advantageous for Korean exports."

She added, "The direction of the US Dollar is important, and it seems to be determined after Trump's inauguration," stating, "If the depreciation of the Korean Won is excessive, there will be a correction, and foreign purchases depend on this."

No Jeong-dong, Hankyung.com reporter dong2@hankyung.com