SEOUL: South Korea’s stock market turmoil has shaken investor confidence but has yet to spill into the broader economy or financial system, highlighting a widening gap between the country’s resilient fundamentals and unusually volatile equity trading.

The South Korean economy expanded 3.8% year-on-year in the first half, accelerating from 1.8% in the second half of last year.

Domestic demand has remained resilient, while gains in shipbuilding, biohealth and cosmetics have joined strong semiconductor exports.

South Korea’s current account surplus reached US$191bil in the first half, surpassing last year’s record full-year surplus of US$123.1bil.

Earnings expectations have also risen sharply, analysts noted, with projected 2026 operating profits of Kospi-listed companies climbing from 564 trillion won at the end of January this year to 975 trillion won at the end of July. — The Korea Herald/ANN

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