Korea Investment Corporation Discusses Global Financial Market Outlook in London, UK

Discussion on Second Half Economic Outlook with Global Investment Experts
Financial Market Liquidity and Volatility Forecast
"Liquidity Expected to Decrease After Second Half"

The sovereign wealth fund Korea Investment Corporation (KIC) hosted a gathering in London, UK, where Korean institutional investors, local investment experts, and global investment banks came together to discuss the outlook for the global economy and financial markets in the second half of the year.

KIC announced that its London branch hosted the 27th "London International Financial Cooperation Council" on the afternoon of the 25th (local time). The meeting was attended by over 30 investment officials from the government, public investment institutions, securities, banks, and insurance companies, including the financial counselor of the Korean Embassy in the UK.

At the meeting, Albert Edwards, Global Head of Investment Strategy at Soci?t? G?n?rale, and Andrew Lapthorne, Global Head of Quantitative Research, jointly presented. Edwards stated, "This year, the liquidity environment in financial markets is improving, and with the stabilization of the economy, market volatility is expected to decrease in the second half of the year." However, he added that in a scenario where high interest rates are prolonged, there is a risk that the interest burden from high rates could spill over to small and medium-sized enterprises and the private equity market.

Lapthorne explained, "Currently, the stock market trend is concentrated on some large-cap stocks and is showing patterns that do not align with the traditional stock-bond correlation, which is putting pressure on the market." He noted that the UK economy is currently at a stage where inflation is stabilizing while growth is slowing, but emphasized the need to carefully monitor the economic and financial market impacts of the early general election results expected in July.

Park Jin-sung, head of KIC’s London branch and organizer of the event, said, "In a situation where central banks' monetary policy directions are acting as significant variables in international financial markets, this was a valuable opportunity to review the financial markets in the first half of the year and discuss the economic outlook for the second half."

Meanwhile, KIC has overseas branches in global financial hubs including New York and San Francisco in the United States, London in the UK, Singapore, and Mumbai in India. Each overseas branch strives to share investment information with domestic public and private financial institutions operating locally and to establish mutual cooperation systems.