[Reporter’s Notebook] The Dream of K-Finance Drifted Away by 'Gye-eom'

"Value-up suddenly became Korea discount overnight."

This is a bitter joke from a financial holding company official.

Since the martial law was declared on the 3rd, the outlook of investors watching financial stocks, which have been on a downward trend, has turned cold. This year, financial stocks showed an increase of up to 70% on expectations of value-up. This was the result of specific goals, clear achievement methods, and the sincerity of the management who were 'serious about value-up.' However, within just 4 trading days after the martial law, financial stocks had to give up about one-third of this year's gains. KB Financial's stock price fell 18.18% over 4 trading days (closing price basis) from the 4th to the 9th, immediately after the martial law was announced. During the same period, Hana Financial (-13.33%), Woori Financial Group (-10.98%), and Shinhan Financial Group (-5.93%) also recorded significant declines. In particular, the withdrawal of foreign investors pulled down the stock prices. Over 4 trading days after the martial law, foreign investors net sold financial stocks worth more than 1 trillion won.

Financial companies that had focused on value-up are left feeling hollow. Until now, financial authorities and heads of financial holding companies have been steadily making value-up sales efforts to investors while touring Hong Kong, Southeast Asia, and other regions, but it all turned into a bubble overnight.

A financial holding company official lamented, "In the end, no matter how solid a company's fundamentals are, if it carries the label 'Made in Korea,' it gets undervalued."

Financial companies that had been making every effort for value-up are now making an all-out effort to prevent foreign investor withdrawal. They are sending letters to investors and frequently holding conference calls, desperately trying to maintain external credibility. Whether they can reverse the investor sentiment that has once left is uncertain, but it is an expression of the urgency to do something.

So far, we have felt the status of national prestige represented by 'K.' Following K-beauty and K-pop, the first Nobel Literature Prize winner has emerged, enjoying the K golden age. However, in the financial market, the K magic did not work. The expectations for K-finance due to value-up were short-lived and froze solidly by the cold water of 'martial law.'

While nationality may be a 'free pass passport' or a 'business card' for some, for our companies including financial firms, 'Made in Korea' is a fate that requires lifelong self-proof.

The martial law ended in 6 hours, but the impact it had on our economy remains like a tattoo that requires lifelong self-value proof.