What is the reason for the stagnation of the Korean stock market in the past ten years?

Mondo Finance Updated on 2024-03-06

Analysis of South Korea**: What is the reason for the stagnation of the decade?

The South Korean market has been in a difficult situation for the past 10 years and has not been able to break through the 2500 mark. So, what is going on with this embarrassing situation in the South Korean ** market?

South Korea is one of the "Asian Tigers" and has made remarkable economic achievements in recent decades. However, in recent years, there have been some problems in South Korea's economic development, such as high unemployment and low growth rate. The emergence of the above problems has brought a certain negative effect to the South Korean market, and also weakened investors' confidence in its market.

South Korea's ** is dominated by those large companies that have a large share of the market. That is to say, if the performance of those large companies is not good or the market is unstable, then it will affect the entire ticket market. In addition, the composition of investors in the South Korean ** market is relatively simple, with individual investors being the majority, and the number of institutional investors is insufficient. This creates vulnerability to speculation, which increases volatility.

In the past two years, South Korea has introduced a series of measures to promote the development of the ** market, including reducing transaction fees and relaxing investment in foreign investors. However, at present, the effect of the above measures is not obvious. At the same time, a series of regulatory measures, such as increasing supervision and taxation, have adversely affected the healthy development of the industry.

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