South Korea's benchmark stockmarket index, the Kospi, is typical of emerging markets: it is highly exposed to the global economic cycle. Cyclical stocks (which are particularly sensitive to these ups and downs) comprise round 80% of the index.
Market heavyweight Samsung dominates the consumer goods sector and accounts for almost a fifth of the overall market, while the car and car-parts sector, dominated by Hyundai, accounts for nearly a tenth. Industrial and technology companies, many of which are export-orientated, comprise another quarter of the Kospi.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
HMRC confirms crypto ETN ISA rulesWith crypto ETNs now technically available for UK retail investors, HMRC has confirmed they can be held in an ISA – but there’s a complication
-
Pensioners targeted in fine wine scams – the tactics to watch forWine has emerged as the latest lure in investment fraud, with pensioners being specifically targeted by scammers
