Financial Services Commission Refutes Foreign Column Claiming "Korea Is Becoming Uninvestable," Citing Incorrect Statistics

The Financial Services Commission has strongly refuted a foreign media column claiming that Korea has become an unsuitable country for investment.

On the 4th, the Financial Services Commission addressed Bloomberg’s column titled “South Korea is Becoming Uninvestable, Too,” stating, “Some statistics cited in the column do not match the facts, and accurate sources could not be verified.”

The column, released on the 4th (local time), pointed out that the volatility of Korea’s stock market discourages foreign and institutional investment, citing last month’s case when the KOSPI plunged 40% in just 27 trading days. It particularly noted that leveraged products based on single domestic stocks have amplified volatility, with individual investors suffering the most. The column also analyzed that the number of accounts subject to forced liquidation during this period reached as many as 360,000.

The Financial Services Commission indicated that these statistics are incorrect. The daily average number of accounts subject to forced liquidation in June was 3,000, meaning that the 360,000 accounts mentioned in the column did not actually face such liquidations.

The Commission stated that, in terms of fundamentals, the domestic stock market is more robust than ever. This is because expectations for the artificial intelligence (AI) and semiconductor industries have risen, and Korean companies’ projected earnings have increased even compared to when share prices were at their peak. According to FnGuide, earnings forecasts for KOSPI-listed firms have constantly risen this year—from 644 trillion won as of March, to 854 trillion won in April, 912 trillion won in May, 930 trillion won in June, 975 trillion won last month, and 978 trillion won as of today.

The Financial Services Commission further stated that stock market volatility is being managed through market stabilization mechanisms. Concerns over single-stock leveraged products—recently pinpointed as a source of volatility—are also being addressed through supplementary measures. The trading volume for these products dropped from 12.4 trillion won on the 30th of last month to 1.3 trillion won on the 4th of this month, following an increase in the minimum deposit requirement from 10 million won to 30 million won on the 31st of last month.

A Financial Services Commission official emphasized, “There is absolutely no concern that Korea will be deemed an uninvestable country based on unsubstantiated figures, especially at a time when Korea is emerging as an indispensable supplier and investment destination in the global AI market.”

This content was produced with the assistance of AI translation services.