TradingKey - The candidate from South Korea's Democratic Party, Lee Jae-myung, has officially been confirmed as the winner of the 21st South Korean presidential election and will assume office immediately. Investors' confidence was boosted by Lee’s victory, as he seeks to end political turmoil and invigorate the economy, leading both the South Korean stock market and the won to rise.
On the morning of the 4th, the Kospi composite index rose more than 2%, reaching 2,762.28. Year-to-date, this benchmark stock index has increased approximately 15%. The U.S. dollar/Korean won exchange rate (USD/KRW) fell 0.31% to 1,373.85.
South Korean Kospi Composite Index, Source: Investing.com
On the 4th, the National Election Commission of South Korea passed a resolution certifying the results of the presidential election, formally confirming Lee Jae-myung as the President-elect.
Data showed that Lee Jae-myung from the Democratic Party received 49.42% of the votes, while Kim Moon-soo from the People Power Party secured 41.45%.
Lee stated that he would strive to promptly end the current political instability, rejuvenate the South Korean economy, and restore normalcy to citizens’ daily lives as soon as possible.
Analysts from Daishin Securities indicated that the new president would work wholeheartedly toward revitalizing domestic demand through stronger policy combinations. Given global economic recovery outside the U.S. and combined with domestic industrial policies, analysts expect South Korea to maintain strong export momentum.
The brokerage forecasted that the South Korean composite index will climb above 2,800 in the third quarter and recommended buying opportunities on dips.
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