Is the Undervaluation of the Korean Stock Market Due to Household Assets? [3-Minute Brief]

Published 06 Feb.2024 08:00(KST)

Updated 19 Jan.2025 10:46(KST)

[3-Min Brief 3-Second Summary]
① January Imported Cars, Hybrids Exceed Half
② Has It Hit Bottom Now... Funds Flow into China ETF
③ Trump "60% Tariff on China if Re-Elected"

MARKET INDEX

Is the Undervaluation of the Korean Stock Market Due to Household Assets? [3-Minute Brief]

- US New York Stock Exchange's three major indices all closed lower
- Impact of Jerome Powell, Fed Chair's hawkish remarks
- Last week's strong employment data and corporate earnings

Top3 NEWS

Lexus E5300h
Photo by Lexus

■ January Imported Cars: Hybrids Exceed Half... Lexus Rises to 3rd Place

- Monthly share of imported car sales: hybrids surpass 50% for the first time
- Including plug-in hybrids (PHEV), share reaches 58%
- Japanese brand Lexus overtakes Volvo and Audi

■ Has It Fallen Enough? Funds Flowing into China ETFs

- Prolonged correction in Chinese stock market, falling to historic lows
- Growing expectations for 'February effect' from government stimulus
- Samsung KODEX net asset value increased by 96 billion KRW

■ 'Trade War Warning' Trump: "If Re-elected, Tariffs on China Will Exceed 60%"

- Trump appeared on US Fox News saying "China is using the US"
- Announces Season 2 of US-China trade war... considering ultra-high tariffs
- Current average US tariff rate on Chinese imports is 12%

the Chart : Is the Korean Stock Market Undervalued? Look at Household Assets

- Concerns over limited effect of 'corporate value-up program'
- Due to Korea's low household cash ratio compared to other developed countries
- Most Korean household assets are tied up in illiquid real estate

Money-Making Law

■ 'Network Law Firm' YK Enters Top 10 in 12 Years Since Establishment

- Law firm YK, promoting itself as a network law firm, achieved rapid growth in 12 years
- Seven major firms including Daeryuk Aju posted single-digit results due to economic downturn
- "Growth secret is building a profit structure through aggressive scouting strategy"
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024020518145987219

■ "Bar Associations Neglect Public Interest Duties and Focus Too Much on Protecting Their Fields"

- Article 27 of the Attorney-at-Law Act: "Must engage in a certain number of hours of public interest activities annually"
- Aimed at restoring public trust in lawyers tarnished by various legal scandals
- Calls increasing for Korea Bar Association and Seoul Bar Association to lead public interest activities
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024020518190210463

■ Administrative Court Rules "Korea Petroleum Management Institute Must Refund 3.5 Billion KRW"… SK Energy Wins Refund Lawsuit on Petroleum Import Levy

- SK Energy won lawsuit against Korea Petroleum Management Institute
- Levy paid on petroleum imports, partially refunded
- Court: "Oil tanker freight index can be calculated based on shortest distance"
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024020518225219205

※ 'Money-Making Law', a content partnership corner between Asia Economy and Law Times, is published every Tuesday and Thursday.

Terms in the News: Excessive Medical Use, 'Out-of-Pocket Rate' Raised Up to 90%

On the 4th, Park Min-su, the 2nd Vice Minister of Health and Welfare, announced the 2nd Comprehensive Health Insurance Plan at the Government Seoul Office.
[Photo by Yonhap News]

- 'Out-of-pocket rate' is the portion individuals must pay directly when receiving medical services
- Government plans to raise out-of-pocket rates for low-necessity medical procedures
- Koreans' average annual outpatient visits: 15.7 times, three times higher than OECD average

Today's Key Schedule

○ Domestic
- 6th: KOSDAQ ShinYoung SPAC No.10 listing, offering price 2,000 KRW
- 6th: KOSDAQ Studio Samik listing, offering price 18,000 KRW

- Gwangju Hillstate Jungoe Park (3BL)
- Gwangju Hillstate Jungoe Park (2BL)

- Gyeongbuk Hillstate The Sharp Sangsaeng Park (2nd Complex)
- Busan Tenenbaum 294II
- Busan Tenenbaum 294I
- Jeonnam Jangseong Namyang Hutton River Park
- Pyeongtaek Brain City Daekwang Rosebiang Grand Centum (5BL)

- Seoul Maple Xi
- Busan Doosan We've The Zenith Central Yangjeong
- Chungnam Gongju Wolsong District Gyeongnam Honorsville (B4)

○ Overseas
- 00:00 US ISM January Non-Manufacturing PMI
- 08:30 Japan December Household Spending
- 12:30 Australia February Interest Rate Decision
- 16:00 Germany December Factory Orders
- 18:30 UK January Construction PMI

◇ Lunch & Commute Weather

○ Lowest Temperature -2℃ (▼5℃) ｜ Highest Temperature: 5℃ (▲1℃)
○ Precipitation Probability Morning 30%｜Afternoon 40%
○ Fine Dust Morning Good｜Afternoon Good

OK in 3 minutes, essential time-efficient economic news. Published daily at 8 AM.