Competition Among 'National Sales Representatives'

On August 22, 2016, at the closing ceremony of the Rio de Janeiro Summer Olympics in Brazil, then Japanese Prime Minister Shinzo Abe made a surprise appearance. It was to promote the 2020 Tokyo Olympics, and it was a huge hit, to put it bluntly. Dressing up as the popular animation character Super Mario was a masterstroke that maximized the promotional effect.

This is according to a representative of an activist fund. “The late Prime Minister Abe even did 'sales' at the official residence. He invited heads of overseas investment institutions and made direct presentations (PT), appealing for ‘Buy Japan’.” In other words, he was fiercely kicking under the surface, and the brief moment he showed his foot out of the water was the ‘Abe Mario’ at Rio.

Prime Minister Fumio Kishida is a spitting image of his predecessor Abe. This is according to a chief investment officer (CIO) of a pension fund met earlier this month. “Recently, Prime Minister Kishida invited representatives of overseas investment institutions such as pension funds and funds to the official residence and conducted a national investment briefing (IR) through direct PT.”

Having endured the lost 10, 20, and 30 years, Japan is now on a roll. The Nikkei index has surpassed an all-time high. The unemployment rate is low enough to complain about labor shortages. This is no stroke of luck. Since Abe’s time, the ‘three arrows’ (quantitative easing, fiscal expansion, deregulation) have been aimed at the target called ‘economic revival.’ Kishida, who succeeded these policies, led a stock price boom last March by promoting a stock market stimulus plan focused on the price-to-book ratio (PBR).

Alongside Japan, another country that recently conducted a national IR is Saudi Arabia. It is also said to have invited representatives of overseas investment institutions to appeal for ‘Buy Saudi.’ Both countries’ IRs were orchestrated by BlackRock, the world’s largest asset management company, which is sensitive to the scent of money.

Saudi Arabia, which dealt Korea a bitter defeat in the ‘Expo hosting bid,’ is concentrating all national resources on completing the futuristic new city Neom City and hosting the Expo in 2030 in line with its ‘Vision 2030.’ While spreading oil dollars worldwide, it is also attracting global investment and moving in a coordinated manner.

At the forefront of these two countries are ‘Salesperson Kishida of Japan Inc.’ and ‘Salesperson MBS (Mohammed bin Salman Crown Prince) of Saudi Inc.’

President Yoon Suk-yeol calls himself ‘Korea’s No. 1 salesperson.’ Some mock him, but such expressions of will are important. The president’s frequent overseas trips accompanied by corporate heads should not be viewed cynically. A CEO of a major corporation said, “It is a good opportunity for the accompanying corporate heads to naturally meet minister-level officials of the countries visited.”

This year alone, President Yoon has visited the Korea Exchange twice and has also started ‘sales’ for the Korean stock market. A ‘Corporate Value-Up Program,’ modeled after Japan’s stock market stimulus plan, will be announced on the 26th. Market expectations are high. There are some concerns, however. There is worry that activist funds that swept through Japan will launch an assault on the Korean stock market. Of course, their excessive demands should be guarded against. But it is not something to be blocked blindly. There are countless Korean companies that have neglected shareholder interests.

When there is potential, experts recognize it first. Did the sharp-eyed Warren Buffett buy shares of Japanese general trading companies in advance for no reason? The sales performance of Korea’s No. 1 salesperson in the stock market will take shape over this year and next.

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