Historically, you never knew what you were investing in Korea as the balance sheet was unclear. You go into a secondhand kind of a car market and you don't know what you were buying, so the natural thing to do is you paid a discount to everything you looked at. |
I think it's a healthy correction, some valuations got a little high. |
One thing that tended to surprise a lot of people this year is that the market was going up on the back of very little net foreign inflow. |
Previously Korea has been one of the leveraged plays on global industrial activity. So, when people were bullish globally, people were even more bullish on Korea. |
Red chips and large industrial shares have been outperforming recently. They have been boring and undervalued, but international investors are beginning to pay attention. |
There is still a chance for loan growth to slow further, but the Chinese government is slowly loosening. If loan growth picks up, it will be good for banks. |