President Moon Jae-in visits Nonghyup Bank in August 2019 and joins the Pilseung Korea Fund. Provided by the Blue House
President Moon Jae-in, who is known to have little interest in financial technology, repurchased a portion of the fund that yielded 90% on the 15th and invested 10 million won each in five financial products. Was President Moon doing a’successful investment’ that ant investors can imitate? The fund that President Moon made with a high rate of return is the’Pilseung Korea Fund’, which he joined in August 2019. It is a product made by NH (NH) Nonghyup Finance, and is a stock-type fund investing in domestic companies in the fields of materials, parts and equipment in the atmosphere of opposing export restrictions at the time. President Moon visited the Nonghyup to join the fund and said, “I thought that I should also join and add strength. I hope that many people will participate in this way and give them strength.” It was a’political message’ from the president to give money to overcome Japanese export restrictions. President Moon’s fund was’big hit’ after a year and a half. The yield has reached 65% over the past year. On the 13th, the Blue House announced that President Moon’s repurchase of some funds, said, “The result of overcoming the wave of export restrictions through cooperation between large companies and small and medium-sized enterprises. I thought that was the case with President Moon when he signed up for the fund, and when he delivered the news of the redemption, and wrote the article. Looking at the base price that measures the value of the fund, it has risen sharply since December last year. Looking at the companies this fund has invested in, you can see why. According to the fund management report, the stocks held by this fund in November of last year were Samsung Electronics (21.8%), Samsung SDI (SDI3.88%), Hyundai Mobis (3.24%), Hyundai Motor Company (2.21%), and KB Financial Group. (1.94%), etc. In other words, as the stock price of Samsung Electronics surged at the end of last year, the return on the fund also increased significantly. An experienced brokerage employee said this. “As a fund invested in the general manager, it was not a big hit, but the return on the fund invested in companies related to the 4th industrial revolution came out well. It was a fund that included all IT-related companies such as Samsung Electronics and Hynix, and it was easy to make a profit because the market is good now.” In fact, the small company’s stock held by this fund was much smaller than that of large public companies. Sangah Front Tech (3.24%), CS Wind (2.10%), Hansol Chemical (1.94%), and Mirae Company (1.70%) were stocks. In other words, Pilseung Korea Fund said, “Investing in domestic companies in the parts, materials, and equipment sectors that are striving to localize technology and develop original technology”, but most of the investments were far from grassroots small and medium-sized companies, and the stock prices of large companies This is the virtue of Orn. Of course, Samsung Electronics also struggled with Japan blocking the export of materials necessary for the semiconductor manufacturing process. But just because this fund bought Samsung Electronics stock, can it be considered that it helped to invest in overcoming export restrictions? It must have been a little helpful for the stock price to rise. President Moon’s new investment by repurchasing the fund seems to be due to an unexpected rise in fund returns due to the stock market overheating. Related reports came out from the end of last year, and the president wasn’t trying to make money, but when the profits grew too large, I was worried about what to do. So, when the Blue House tried to promote the Korean New Deal Fund at the same time, it seems like this was inclined. This time, we have diversified investments evenly in funds with Korean New Deal and ETFs. These are Samsung New Deal Korea Fund, KB Korea New Deal, Beautiful SRI Green New Deal 1, TIGER BBIG K-New Deal ETF, HANARO Fn K-New Deal Digital Plus ETF. An official from a manager is skeptical when he sees such an investment. “The private sector hasn’t even started investing in the Korean New Deal. The fund invested by the president is to buy stocks of listed companies related to digital or green, so it has nothing to do with these companies investing in’Korean New Deal’.” Last year, a foreign brokerage company made biting criticism. CLSA, a Hong Kong-based securities firm, analyzed the impact of the Korean New Deal Fund on the market and said, “The government is pouring fuel into the passion for bio, battery and Internet investment, which is getting much attention in the market without government support. “The posture the government should take is to calm the market fever filled with irrational optimism.” Last week the stock market was really full of heat. The KOSPI index exceeded 3200 for the first time in history at one time on the 11th. Stocks bought by individual investors for 5 days are close to 10 trillion won (net purchase basis). Even in a survey asking for the most advantageous financial method, the person who ranked’stock’ reached 25%, the highest since the previous survey. Previously, 11% (July 2020) was the highest. This is the result of a survey of 1,000 people by Gallup Korea and released on the 15th. A politician from “economic pains” said that the Blue House should show policy leadership rather than events like presidential funds. “It is understandable that we want the Korean New Deal to go well, but it should be shown as policy leadership, which is not desirable. In order to diversify investment targets, revitalization of the capital market is also important, but the president’s job is to establish an order so that the rights of individual investors are not violated, such as increasing transparency in corporate disclosure and preventing unfair trade.” Even during the Park Geun-hye administration before the Moon Jae-in administration, there were’Unification Fund’ and’Youth Hope Fund’ created to promote policy. It is a name that is all forgotten in the market now. I hope that the’Korean New Deal’ will become’Seongjin’ through real policies. By Lee Wan, staff reporter [email protected]