Korea Capital Market Institute

The Impact and Implications of a Shift in US Monetary Policy on the Won-Dollar Exchange Rate [Senior Research Fellow] LEE, Seungho / Sep. 24, 2024 The strength of the US dollar, which has been the primary driver of the won-dollar exchange rate increase over the past two years, is approaching a turning point due to potential changes in US monetary policy. With the Fed poised for an imminent rate cut, the US dollar is expected to gradually weaken, leading to an influx of global investment funds into Korea and exerting upwar... Key Characteristics of the Recent Surge in Individuals’ Bond Investment [Research Fellow] Jung, Whayoung / Sep. 24, 2024 Since 2022, when market interest rates rapidly rose due to aggressive monetary tightening, individuals’ bond investment has significantly surged. The characteristics of this investment vary by bond type. Investments in Korea Treasury Bonds (KTBs) have expanded, particularly in ultra-long KTBs with remaining maturities exceeding 20 years. Despite the high risk of price volatilit... The TMON and WeMakePrice Crisis: Key Issues and Challenges [Senior Research Fellow] Shin, Bosung / Sep. 03, 2024 Recently, the misappropriation of sales proceeds by large open market platforms has caused significant market disruptions in Korea. To prevent such incidents from recurring, business entities, including open market platforms, should be prohibited from concurrently operating as a payment gateway (PG). Also necessary is the separation of a PG’s proprietary account from its paymen... Strategic Direction for Korea’s Value-up Program [Research Fellow] Lee, Sang Ho / Sep. 03, 2024 Publicly traded companies that raise capital by issuing shares should, over the long term, achieve shareholders’ required rate of returns by enhancing their stock prices. This approach aligns with the standard practice to fairly compensate shareholders who have invested in risk capital. However, in the Korean market, more than half of the companies have failed to achieve even a... Tick Size Reduction for Exchange-Traded Products: Effects and Implications [Research Fellow] Kim, Minki / Aug. 20, 2024 In December of last year, the Korea Exchange implemented a reduction in the tick size for ETPs priced below KRW 2,000, lowering it from KRW 5 to KRW 1. Amid the growth of low-priced ETPs in the secondary market, this measure was introduced to address issues of low-priced products such as widening bid-ask spreads and increasing tracking errors. As of the date of the tick size re...