Financial markets 'traumatised' by Trump tsunami...Storm, how long?

[Anchor]
After President Trump of U.S. interest-first policy was elected, Korea's financial market was shocked by a tsunami.

It has stumbled with the exchange rate soaring through 1,400 won and falling stock prices, and concerns are being paid to how strong and how long the "Trump-footed" hit will continue in the future.

I'm reporter Kim Ki-bong.

[Reporter]
The wave that began in our financial market on the afternoon of the 6th, when the "Trump Victory" atmosphere was detected, soon grew into a tsunami-class shock wave.For just a week, the KOSPI fell 6.2% on the

trading day, and its market capitalization fell below 2,000 trillion for the first time since 'Black Monday' in early August.

The KOSDAQ fell more than 9% to its lowest point in 20 months since January last year.

Major global stock markets fell or rose slightly during the same period, but KOSPI and KOSDAQ saw noticeable declines.

[Joongrak / Director of Daishin Securities Research: (In the Trump era), especially with the volatility growing, the Korean economy is so large that the Trump risk is immediately reflected in the domestic stock market more than in other countries]

The sentiment that the damage to South Korea exporting semiconductors to China is inevitable if Trump checks South Korea's auto industry for his country's auto industry and restricts China's IT exports with a hard-line policy has dampened the market.

The foreign exchange market was also in shock and chaos.

On the day the possibility of winning the election was announced, it immediately broke through the psychological barrier of 1,400 won, and continued its super strength, exceeding 1,400 won for a few days.

The prospect that tariff barriers to protect domestic companies will increase import prices and that domestic production costs will rise due to immigration curbs, making it difficult for the Fed to cut interest rates.

If the U.S. hesitates to cut interest rates, it will inevitably increase the burden of lowering interest rates, which could lead to a "new three high" swamp of high exchange rates, high prices, and high interest rates.

[Ju Won / Head of Economic Research at Hyundai Research Institute: At least the volatility of financial markets, the phenomenon of indicators rising and falling in a hurry, is likely to last quite a long time until (Trump) takes the direction of economic policy.]

In the end, the principle that strengthening the economic fundamentals through leading industrial diversification, deregulation, and corporate governance is the way to overcome the waves that will come to the financial market is being emphasized again.

I'm Kim Ki-bong of YTN.


Video Editing: Jung Kook-yoon
Design: Lee Wonhee