Meeting of Minds – August 2019

Published on: August 28th, 2019

Korea is one of the most indebted countries in the world with a heavy reliance on USD funding in its corporate sector. With a global slowdown, US Trade War and escalating tensions with its near neighbour Japan, Korea is uniquely vulnerable.


  • KH
    Kyubeom H.
    29 August 2019 @ 00:14
    Raoul, I love your work. I agree to most parts of this paper. SK is getting worse in terms of economic and political perspectives. But I am not sure of USD funding issue. The government has controlled foreign currency denominated debts pretty well in financial and non-financial sector since GFC. SK is a net creditor, as well. Do you have any data to show reliance on USD funding in private sector?
  • KA
    Kelly A.
    2 September 2019 @ 17:18
    Probably just me, but I don't care about SK. For me macro insiders is more about world macro and especially about USA markets. Sorry.
  • GP
    Geoff P.
    7 September 2019 @ 14:55
    Can you guys share some thoughts on counter-party risk? Particularly as it relates to the doom loop and financial products such as futures and structured products backed by bank credit? My personal view is that most counter parties will be backstopped but bank credit is risky (I had a 2/10 steepener backed by LEH purchased in 06 and held based on bailout after bailout.... ooops, right idea, wrong credit). I'm really enjoying your conversations. Very well done. Thanks.