Wednesday, October 8, 2008

Malaysiakini : South Korea To Asia Financial Market Meltdown ?

This morning while I was searching some article, there is big news in front page newspaper (Sin Chew Daily) stated that South Korea might be the first country in the region to start the Domino Effect in Asia financial system......

I was so surprised because lately if we take a look on what has been happening around .... Asia financial system still standing strong without any announcement that any of their financial institutions are facing bankruptcy or being bailout.

Here are the latest new about South Korean, Investment outflow surges close to $10 billion in Korea. (06/10/2008)

Foreign direct investment in South Korea recorded the largest-ever net outflow in the first eight months of the year, as more foreign investors and Korean entrepreneurs leave the nation in search for more business-friendly markets, the central bank's data showed yesterday.

The Bank of Korea said FDI inflow by foreign investors stood at $26 million during the first eight months of the year, the lowest in 28 years since the bank started collecting the data. FDI outflow by Korean investors amounted to $9.68 billion, marking the largest net outflow of $9.66 billion since records began.

The January-August FDI inflow plummeted so far this year, taking up only 1.5 per cent of what was invested in the local market during the same period last year, which totals $1.68 billion. The January-August FDI inflow topped $4.78 billion in 2004 but continued to drop to $2.96 billion in 2006.


(The words of Kim Dae Jung which shook the Korean stock market during 1997 Asian Financial Crisis)

FDI outflow by Korean investors jumped 40 per cent from $6.88 billion a year earlier. Net outflow almost doubled from last year's $5.23 billion.

"A net FDI outflow means more foreign currency went out of the country. Foreign direct investment tends to be long-term and the Korean market should respond with an improved investment environment, rather than coming up with short-term solutions to liquidity problems"

I hope this is just a rumour or else if this thing turn out to be true, it will be very bad news for our Asia financial market.

2 comments:

Anonymous said...

*


Recently an insurance company nearly wind up....


A bank is nearly bankrupt......filing chapter 11 protection.


How it affect you? Did you buy insurance? Did you buy mini note or bonds?



Who fault?


They bailout trouble finance company, but they will not bail out your credit card bills……And the bill out of company is still not enough yet…….Should they have use the bail out $$ to pump into all different industries……You got no choice, and no point pointing finger but you can prevent similar things from happen again……


The top management of the Public listed company ( belong to "public" ) monthly salary should be tied a portion of it to the shares price ( IPO or ave 5 years ).... so when the shares price drop, it don't just penalise the investors, but those who don't take care of the company.....If this rule is pass on, without any need of further regulation, all industries ( as long as it is public listed ) will be self regulated......because the top management will be concern about their own pay check…… And they are still spend big money on hotel stay and luxury function……..

Meanwhile if company was being acquired, there will be a great movement in terms of staff……eventually staff suffer also.

Are you a partisan?

Sign a petition to your favourite president candidate, congress member, House of representative again and ask for their views to not just comment on this, and what regulations they are going to commit and implementation the regulation, I believe should vote for the one who come suggest good implementation and let’s see who back up, which don’t implement after just mentioning in the election campaign.....If you agree on my point, please share with many people as possible.... Finance and Media are the two only industries can shaken politics ( Maybe Hackers can ), please help to highlight also...

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