"'Choedanwi Big Investors' Cooperative CIOs Say Long-Term Investment Perspective Needed Over Stock Panic Selling"

(From left) Lee Doyoon, Head of Asset Management Division at Yellow Umbrella Mutual Aid, Lee Sanghee, Director of Financial Investment Division at Military Mutual Aid Association, Han Jongseok, Director of Financial Investment Division at Police Mutual Aid Association

[Asia Economy Reporter Park So-yeon] Amid global tightening fears causing domestic and international stock markets to falter, chief investment officers (CIOs) of major mutual aid associations managing trillion-won funds cautiously forecast that most negative factors have already been reflected, and that market normalization will occur once uncertainties following the US interest rate hikes are resolved. They advised seeking opportunities from a long-term perspective rather than hastily joining a panic sell-off.

On the 28th, Lee Do-yoon, Head of Asset Management at Noranwoosan Mutual Aid, said, "If the money that was injected continues to be left unchecked, bigger problems will arise, so during the withdrawal phase, it must be done decisively." He advised, "Market participants may suffer temporarily, but it is important to broaden the view and invest long-term." Lee added, "For parts that have fallen significantly, it is rather necessary to increase the weighting, and for parts that should be reduced, adjustments should be made accordingly," emphasizing, "There is no need to actively join panic selling due to fear."

Lee Sang-hee, Director of Financial Investment at the Military Mutual Aid Association, also stated, "All the negative factors have been revealed," and forecasted, "Once interest rates are somewhat confirmed around May, the resolution of uncertainties will improve market conditions." He predicted, "Risks will ease to some extent in the second half of the year," and noted, "The Nasdaq has fallen 21% compared to the beginning of the year, and among US institutional investors, there are opinions that the market, thirsty for good news, will rebound sharply." He advised, "It is better to increase cash holdings now and watch for investment opportunities."

Han Jong-seok, Financial Investment Director at the Police Mutual Aid Association, said, "After the COVID-19 pandemic, the KOSPI index went from 1400 to 3400, but because the expansion was so large, a retraction is occurring," adding, "A correction for a larger expansion in the long term is inevitable." Han mentioned, "From 2003 to 2007, the KOSPI started at 500 and went up to 2000, but there was a 20-30% crash in between due to shocks from China." He said, "Interest rates will continue to rise, but we are largely expecting economic recovery 'reopening' to cover the rate hikes." He added, "The US economy is not bad," and "Reopening will be an event with tremendous ripple effects." He advised, "In such situations, do not panic but be patient, and whenever there is a shock, if liquidity is available, approach it from a buying perspective."

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