" Japan reaction "
( Achieved 200 trillion in Korean currency swaps in seven countries
" South Korea-Japan swap is meaningless anymore ")
2020/02/05
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Professor Kim Daejong (김대종), Sejong University School of Business,
To prevent the currency crisis from recurring
He concluded a paper on the signing of a US-US currency swap and expanding foreign currency reserves.
Wuhan pneumonia virus (Corona 19) problem banned migration and reduced trade,
South Korea is also concerned about the second currency crisis.
Professor Kim Daejong (김대종),
If you don't prepare thoroughly, the currency crisis may recur,
"Foreign exchange reserves need to increase by $ 830 billion and a US-US currency swap must be signed."
It was announced in August 2019 in the Korea Business Association and overseas papers.
Wuhan pneumonia virus (Corona 19) is 1000 times more infectious than MERS.
An asymptomatic person had the highest infectivity, which caused a pandemic.
The whole world, including the United States and Europe, has banned travel,
It is expanding from a decline in supply and demand to a real economic crisis and then to a financial crisis.
Wuhan Pneumonia Virus (Corona 19)
9/11 terrorism in 2001
And is putting the global economy and financial markets in danger beyond the 2008 financial crisis.
The solution to this problem is to prevent additional spread,
The only solution is to develop a Wuhan Pneumonia Virus (Corona 19) vaccine and therapeutic agent.
Korea may move from the real economy to a financial crisis.
From early 2020 to March, foreign investors have sold off about 12 trillion won of Korean stocks.
The exchange rate on March 17 was 1,238 won per dollar
The won has been sharply depreciated, which has exacerbated the anxiety.
On March 16, the Bank of Korea cut its benchmark interest rate to 0.75% for the first time in history
However, the Composite Index fell.
Korea's main industries: semiconductors, automobiles, petrochemicals and electronics
Exports in all industries have fallen sharply.
Korea's current account, which is 75% dependent on trade, may fall into the red in March.
The current account in January 2020 was only $ 1 billion.
Korea imports 100% crude oil,
Petrochemicals, the second-largest export item to China and Australia, also came to a standstill.
In this way, the Wuhan Pneumonia virus (Corona 19) has reduced global demand and supply,
Korea, a major export nation, has become the weakest country.
The United States lowers the 2008 financial crisis base rate to 0% and quantifies it
(Supplied dollars), but lack power.
The US Dow Jones fell 30% despite all monetary and fiscal policies.
Korea's international financial situation is at a critical stage.
Korea's short-term foreign debt ratio in 2020 was about 34%,
This is the highest level since 2015.
Short-term external debt, which matures within one year, will increase the volatility of international financial markets
It is extremely dangerous to escape suddenly.
At the time of the 1997 currency crisis, the proportion of short-term foreign debt increased,
It began with the outflow of Japanese funds.
After that, many foreign investors recovered funds at once, causing a currency crisis.
Iran on March 12 due to Wuhan Pneumonia Virus (Corona 19) issue
(IMF) requested about 6 trillion won for emergency funding.
Italy, which banned the movement of all citizens, has a high national debt ratio,
Wuhan pneumonia virus (Corona 19) is the most infected in Europe.
The probability of a currency crisis is increasing.
Argentina has been receiving an IMF bailout since 2019.
Currently, countries with a shortage of foreign currency
Italy, Turkey, India, Indonesia,
Brazil, Pakistan, Iran and South Africa.
Professor Kim Daejong (김대종),
"Worldwide shortage of dollars due to Wuhan pneumonia virus (Corona 19),
Korea Japan and Korea United States reject currency swap,
Korea's short-term foreign debt ratio rising, 75% Korea's high trade dependence,
Uncertainties in international financial markets, such as emerging market defaults, are increasing.
Most important is the signing of a US-South Korea-Japan currency swap.
We have to double our foreign currency reserves as soon as possible. "
Insisted.
Professor Kim Daejong (김대종), Sejong University “
Wuhan Pneumonia virus (Corona 19)
Forex Crisis Needs South Korea US Currency Swap
BIS “ Korea's foreign currency reserve must be doubled”
https://www.mk.co.kr/news/society/view/2020/03/283110/
Input : 2020.03.1817: 56: 41
Sejong University Professor Kim Daejong (김대종),
“Double foreign exchange reserves are needed to prevent the recurrence of the foreign exchange crisis”
Has published a paper with the content.
Professor Kim Daejong (김대종),
Sustained in overseas academic journals and domestic conferences in Korea
He called on the Korean government to take countermeasures, stating that "there is a shortage of Korea's appropriate foreign currency reserves"
Sejong University ( Bae Deokhyo, 배덕효 )
Professor Kim Daejong (김대종),
South Korean government to prevent forex crisis
He concluded a paper on the signing of a US-US currency swap and expanding foreign currency reserves.
Wuhan pneumonia virus (Corona 19) banned population migration and reduced trade,
South Korea is also experiencing a growing concern about the second IMF foreign exchange crisis.
Professor Kim Daejong (김대종) needs to be thorough
IMF Forex Crisis Can Recur
“Foreign exchange reserves need to increase by $ 830 billion and Korean US currency swaps need to be signed”
In August 2019, he made a presentation at the Korean Business Association and overseas papers.
Wuhan Pneumonia virus (Corona 19) Has 1,000 times higher propagation power than MERS.
A pandemic was triggered by the highest transmission of asymptomatic individuals.
The whole world, including the United States and Europe, banned travel,
It is expanding due to the contraction of supply and demand, the real economic crisis, and the financial crisis.
Wuhan pneumonia virus (Corona 19) in September 11, 2001 terrorism and over the 2008 financial crisis
The global economy and financial markets are in danger.
The solution to this situation is to prevent additional spread,
Wuhan pneumonia virus (Corona 19) and therapeutic development are the only solutions.
Korea, which is a real economy, may shift due to the financial crisis.
Foreigners sold about 12 trillion won of Korean stocks from early 2020 to March .
On March 17 , the exchange rate rose sharply to 12,238 won, compounding anxiety.
March 16 Bank of Korea cut base rate by 0.75% early in history
However, the Composite Index fell.
Korea's main industries: semiconductors, automobiles, petrochemicals and electronics
Exports in all industries have dropped sharply.
Japan's current account, which is 75% dependent on trade, may turn into a deficit in March .
The January 2020 current account ended at $ 1 billion.
Korea imports 100% crude oil,
Petrochemicals, the second largest export item to export to China and Australia, were also blocked.
Thus Wuhan Pneumonia virus (Corona 19) Is shrinking global supply and demand,
Korea, a powerful exporting country, has become the most vulnerable state.
US cuts base rate to 0% at 2008 financial crisis level
Started quantitative easing ( dollar supply ) but lacked power.
US Dow Jones Index
Despite all monetary and fiscal policies, it fell 30% .
The situation of international finance in South Korea has entered a serious stage.
Korea's short-term foreign bond ratio in 2020 was about 34% , the highest since 2015 .
Short-term foreign bonds with maturities that return within one year should the international financial markets become more volatile
It's very dangerous to be able to get out of it quickly.
In 1997 , the foreign exchange crisis in Korea increased the short-term foreign bond ratio,
It began with the outflow of Japanese funds.
Since then, many foreigners have collected funds at once and the IMF crisis has occurred.