Global IB "Korea Discount Will Deepen... Opportunity for AI Investors"

Interview with John Woo, CIO of Lombard Odier

John Woods, Chief Investment Officer (CIO) for Asia at global investment bank Lombard Odier, described the state of emergency and impeachment crisis as "more of an economic crisis than a political one," adding, "From a market perspective, the risk is that the Korea discount (undervaluation of the Korean stock market) will deepen further."

According to the US financial media CNBC on the 14th (local time), Woods said in a recent interview with CNBC, "The market will not underestimate this, and will undoubtedly focus more on the profits of Korean companies while monitoring this crisis," and added, "It is certain that Korea's political uncertainty will reach its final phase (end game) around the first quarter of next year."

However, he also forecasted that this political turmoil could present an opportunity for long-term investors investing in industries such as artificial intelligence (AI). He stated, "There is clearly value in the Korean market, and our clients are looking at the Korean market very seriously, paradoxically (to seize opportunities), considering this background," emphasizing, "While the volatility surrounding the political background must be taken very seriously, the overall value of Korea as an AI supply chain should not be overlooked."

He added, "There are various inhibiting factors that prevent global investors from making meaningful investments, but at the same time, there are definitely ways to increase investment," and "Korea's future in the AI supply chain remains intact, and it presents an opportunity for long-term investors who believe in it."

President Yoon Suk-yeol declared martial law. On the morning of the 4th, when martial law was lifted by a resolution of the National Assembly, news related to martial law appeared on the monitor in the Hana Bank dealing room in Jung-gu, Seoul. Due to the impact of martial law, the KOSPI opened down 1.97%, and the exchange rate started at 1,418 won that day. Photo by Jo Yong-jun