The ‘Korea risk’ mentioned in the stock market includes the following elements

 The ‘Korea risk’ mentioned in the stock market includes the following elements: 


1. Geopolitical risk: The constant crisis caused by geopolitical risks on the Korean Peninsula, or ‘Korea risk’, has recently been growing in size. As North Korea's military provocations and resulting security threats increase, this is causing anxiety in the stock market.


2. Excessive taxation: There is an opinion that the excessive taxation system that hinders the development of the stock market and the 'Korea discount' must be fundamentally resolved. Among investors, there is a saying that the 'Korean market' should not be done, and there is an argument that active improvement is needed as the tax system that is unfavorable to investors is one of the causes of Korea's discount. 3. Household Debt Burden: Many factors make the domestic stock market particularly sensitive to U.S. interest rate trends, but the biggest factor is the household debt burden, which is difficult to find globally.


Among these, the biggest risk currently seems to be the relationship with North Korea.


Geopolitical risk risk

1. In 2024, a permanent crisis due to geopolitical risks on the Korean Peninsula, or ‘Korea Risk’, is growing. This was caused by the following factors: 1. North Korea's gamble: North Korea test-fired its first ballistic missile this year on January 14, 2024. This is being interpreted as supporting North Korea's Chairman Kim Jong-un's hardline remarks.


2. North Korea's 'main enemy' statement: Chairman Kim Jong-un said, "I have decided that the people of the Republic of Korea are our main enemies," and "I will not unilaterally carry out a great change by overwhelming force, but I have no intention of avoiding war either."  These recent remarks are quite unusual, and experts have analyzed them as an attempt to draw attention to dissatisfaction caused by internal economic difficulties by diverting attention to the outside world.


3. Experts mention the possibility of war: Currently, many American experts claim that “the situation on the Korean Peninsula is more dangerous than at any time since early June 1950.” They say, "We believe Kim Jong-un has made a strategic decision to go to war like his grandfather did in 1950," and are warning, "We don't know when he will pull the trigger, but the level of danger exceeds the daily warnings of South Korea, the United States, and Japan." .It is pointed out that the stock market is being affected by January 2024 due to the ‘Korea Risk’ due to relations with North Korea.

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