Press Releases

Dept.	Dept. of Risk Surveillance I	Date	15/10/2009
File	Current Status of Korean Financial Market_Oct.15.doc
Subject	Current Status of Korean Financial Market
Current Status of Korean Financial Market Korea’s financial market has recovered to the level it was at prior to Lehman Brothers’ collapse. - As the global financial market is stabilizing, the domestic financial market indices including the KOSPI, foreign exchange rate, credit spread (the difference between the interest rates of corporate bond and treasury bond) have also recovered to the level it was at prior to Lehman Brothers’ collapse. - Volatility in the market, which increased during the crisis, has also returned to the level it was at prior to the financial crisis. Coupling with advanced markets has become more apparent. - During the global financial crisis, the positive correlation between domestic and advanced markets became more apparent. - The correlation between the domestic stock market and the advanced markets is approximately 0.9, and the correlation between the domestic interest rate and interest rates of developed countries is between 0.64 and 0.81. Potential risks are inherent to the current financial market. - Possibility of delayed recovery of the domestic market - Possible increase of the CD rate - Redemption of stock funds For more detailed information, please refer to the file attached.

next	KDIC Carried out a Reshuffle to Improve Management Efficiency
previous	KDIC provided training sessions to officials of the Deposit Insurance Board of the Tanzanian Central Bank