[사설] Over 3,000 in the first chapter in the history of KOSPI… Be mindful of adjustment possibilities

The KOSPI index recorded 3,000 points in the market for the first time yesterday. It has been 13 years and 5 months since it exceeded 2,000 in July 2007. The stock market is strong because of the liquidity that overflows in the market. Various subsidies are released at an ultra-low interest rate, and the amount of floating funds exceeds 1,200 trillion won. This money is driving up the stock market as it is driven to the stock market after real estate.

Some are optimistic that the KOSPI will rise to the 3,300 mark this year. On the contrary, warnings for adjustments following a surge are also coming out one after another. There are actually signs of overheating. Credit loans approaching 20 trillion won show that’debt investment’ and’don’t ask investment’ are prospering. It is also a factor of concern that the gap between the stock market and the real economy is too great, excluding some of the leading domestic industries and companies. If the US central bank tightens, the stock market may be hit.

Our stock market is undervalued compared to the size of the economy. It is good to see that the stock market has risen as Korea’s leading listed companies have been properly evaluated. However, it should not be overlooked that the stock market strength is not economic fundamentals or corporate performance, but overflowing liquidity. This is why the Governor of the Bank of Korea and the Deputy Prime Minister of the Economy have warned of the gap between real and financial and liquidity in the asset market. BOK Governor Lee Ju-yeol said, “With high levels of debt and widening gaps between financial and real, the market could be shaken significantly even with a small impact.”

President Moon Jae-in said, “After the era of Korea discount is over, we are moving toward the era of Korea premium.” Although it suggested the direction that the Korean stock market and economy should go, it is a perception that differs from the BOK governor and the deputy prime minister of the economy and is far from the reality of the overall economy. Companies are unable to even plan business because their business environment is at the worst due to anti-business and anti-market policies and evil laws. There is a saying in the stock market saying,’If the mountain is high, the goal is deep.’ The price of assets raised by the’power of money’ is bound to disappear someday. A smart investment is required, keeping in mind the risk and the possibility of adjustment.