Our bi-weekly Opinion provides you with latest updates and analysis on major capital market and financial investment industry issues.
OPINION
Retail Investors’ Foreign Equity Investment: Characteristics and Implications
[Research Fellow] Kim, Hansoo / Feb. 04, 2025
Retail investors’ direct foreign equity investment has grown rapidly in recent years, with a significant concentration in specific regions and stocks, particularly US technology stocks. Korea’s unique direct foreign equity trading structure offers a distinct advantage in terms of accessibility. However, it should be noted that retail investors in Korea exhibit greater regional ...
Strategic Entry into the M&A Advisory Market: Insights from US Boutique Investment Banks for Korea’s Smaller Securities Firms
[Senior Research Fellow] Lee, Seokhoon / Feb. 04, 2025
Amid declining profitability in traditional business lines, small- and medium-sized securities firms in Korea face the challenge of identifying new growth engines. The experience of small-sized investment banks (IBs) in the US demonstrates that the entry into the M&A advisory market requires industry-specific specialization, expertise and tailored services. This suggests that t...
Evaluating 20 Years of Private Equity in Korea: Achievements and Challenges
[Senior Research Fellow] Park, Yong Rin / Jan. 14, 2025
Marking its 20th anniversary in 2024, Korea’s public equity (PE) has grown into a major investment vehicle with committed capital totaling KRW 136 trillion as of the end of 2023. It has played a pivotal role in mergers and acquisitions (M&A) and corporate restructuring in Korea, fulfilling its initial goal of counterbalancing foreign capital in Korea’s M&A market. Although in t...
Current Status and Challenges of KOFR Adoption: The Importance of KOFR-Linked Bonds and Loans
[Senior Research Fellow] Baek, In Seok / Jan. 14, 2025
Korea's benchmark rate reform has reached a critical turning point. The Benchmark Rates and Short-Term Money Market Council, a public-private collaborative body, has established a phased transition plan to expand the use of KOFR (Korea's Risk-Free Reference Rate), beginning with derivatives transactions in 2025. Since adopting RFRs in derivatives markets has been a cornerstone ...
Current Trends and Outlook of Korea’s Credit Bond Market
[Senior Research Fellow] Kim, Pil-Kyu / Jan. 02, 2025
Korea’s credit bond market experienced growth in issuance volume in 2024 amid interest rate declines. As of November 2024, the issuance of credit bonds surpassed the total volume recorded in the previous year, driven by increased investor demand for credit bonds.
Interest rate cuts have played a central role in driving this growth in the credit bond market, influenc...
Interest rate cuts have played a central role in driving this growth in the credit bond market, influenc...