High Interest Rates Driving Boom?… Wall Street Debates [3-Minute Brief]

[At a Glance]
① Conglomerate Crisis Due to Overextended Business Expansion
② EU Considers Preemptive Interest Rate Cuts
③ High-Interest Card Loan Balances Near 40 Trillion Won

MARKET INDEX

- US New York Stock Exchange's three major indices closed higher
- Tech stocks surge led by Nvidia and others driving the rebound
- International oil prices fall amid easing Middle East tensions

TOP 3 NEWS

■ Even Global Giants Got Hit... GE's Split and Evergrande's Collapse

- Global giants that pursued sprawling business expansions face crisis
- US General Electric to split into three companies after 130 years
- Japan's leading electronics company Toshiba announces large-scale restructuring

■ Will South Korea's Monetary Policy Follow the EU?… Preconditions for Preemptive Rate Cuts

- South Korea's monetary policy likely to show trends similar to Europe
- Due to continued domestic demand sluggishness in South Korea and major European countries
- "Confidence in price and exchange rate stability needed for rate cuts," experts point out

■ "High Interest Rates Driving Boom"… Wall Street Debates US Economic Mystery

- Some on Wall Street claim high interest rates are fueling economic growth
- Because rising benchmark rates increase bond investments and deposit interest income
- Contradicts traditional view that monetary tightening slows the economy

the Chart : Card Loans for 'Ordinary People's Emergency Funds' Near 40 Trillion Won

- As of end of March this year, nine card companies' card loan balances reached 39.4744 trillion won
- Increased by 7.7 billion won in one month, over 2 trillion won increase compared to same period last year
- "Balloon effect appears as savings banks and loan companies raise lending barriers"

Money-Making Law

■ "Same Brand Convenience Stores Cannot Open Within 250m"

- Court recognizes mandatory nature of distance restriction rule… Violating terms invalid
- Franchise headquarters' approved relocations and re-openings may harm business rights
- Various special agreements likely to curb industry exceptions opening within restricted distances
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024042217024217781

■ First 'Senior Partner' Entry into Major Japanese Law Firm

- Attorney Lee Junhee, former Coupang VP of Legal Affairs and head lawyer at Yulchon LLC, joins Japan's TMI
- First time a senior lawyer with over 20 years at a major Korean law firm joins a major overseas law firm headquarters
- "Demand for senior lawyers rising as Korean companies expand into Japan… Many opportunities opening for Korean legal professionals"
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024042217043528053

■ Acceleration of MZ Generation Lawyers Moving from Major Law Firms to Corporations

- Junior lawyers with 3-7 years experience rushing from major law firms to corporate legal teams
- 2030 lawyers say major law firms and judicial research institutes are just resume builders
- "Focus on work-life balance over salary"… Talent competition among law firms
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024042217061939722

※ 'Money-Making Law,' a content partnership corner between Asia Economy and Law Times, is published every Tuesday and Thursday.

Terms in the News: 'WhatsApp' Becomes Retaliation Target of TikTok Ban Law

- WhatsApp, Meta's SMS replacement mobile messenger
- Chinese authorities order WhatsApp removal citing security reasons
- Interpreted as retaliation against the US pushing forced TikTok sale

Today's Key Schedule

○ Domestic
- 06:00 March Producer Price Index
- 23rd KOSDAQ Yuanta No.16 SPAC subscription / Offering price 2,000 won
- 23rd KOSDAQ D&D Pharmatech subscription / Offering price 33,000 won
- 23rd KOSDAQ Mintech subscription / Offering price 10,500 won
- 23rd KOSDAQ SK Securities No.12 SPAC subscription / Offering price 2,000 won


- Incheon Yeongjong Jinarehi (A23)
- Jeonnam Hillstate Juglim The Proud (A4)
- Jeonnam Hillstate Juglim The Proud (A2)
- Busan Ilgwang Norway Forest Ocean Foret
- Busan Dongnae Eco Palace Asiad

○ Overseas
- 00:30 European Central Bank President Lagarde speech
- 08:00 Australia April Manufacturing/Services PMI
- 09:30 Japan April Services PMI
- 14:00 Singapore March Consumer Price Index
- 17:00 Eurozone April Markit Composite PMI
- 17:30 UK Composite PMI
- 22:45 US April Manufacturing PMI
- 22:45 US April Services PMI
- 22:45 US March New Home Sales

◇ Lunch & Commute Weather

○ Lowest temperature 13℃ (0℃) ｜ Highest temperature: 25℃ (0℃)
○ Precipitation probability 10% in the morning｜60% in the afternoon
○ Fine dust Good in the morning｜Good in the afternoon

OK in 3 minutes, essential time-saving and cost-effective economic news. Published daily at 8 AM.