[Click eStock] "Ultimately, the Stock Market Direction Follows Economic Logic"

LS Securities diagnosed on the 5th that although the short-term impact of political risk is inevitable, the stock market direction will ultimately move according to economic logic.

Kim Yoon-jung, a researcher at LS Securities, said, "The future political developments are something to watch," adding, "At least, since the emergency martial law situation was not caused by the state or the financial system and the situation was quickly resolved, the decline can be interpreted as limited to the 1% range."

She continued, "Value-up driven by government-led policies is exposed to the risk of losing momentum," and "After the second half of this year, the foreign ownership ratio has already reversed the expectations for value-up." She emphasized, "Now that the emergency situation has been resolved, the possibility of additional share sales is limited," and "In terms of policy continuity, it is like encountering a major obstacle."

Researcher Kim analyzed, "The opposition party's energy policy related to carbon neutrality measures is relatively proactive in utilizing renewable energy," and "They hold a negative stance on nuclear power." However, she added, "Considering costs and carbon reduction effects, there is no suitable alternative to nuclear power," and "It is necessary to observe whether there will be any future policy changes."

She explained, "The strategy to resolve the Korea discount (value-up) may also change," and "Regarding corporate governance improvement, amendments to the Commercial Act specifying the strengthening of board responsibilities can accelerate."