How Would Global Economic Conditions Affect the Korean Economy?

In response to the Greek financial predicament, foreign investors sold substantial positions in the Korean equity market.

As for real economic activities, Korea’s economy has been heavily dependent on exports

Demand is dwindling worldwide: China is shutting down lending; The American middle class are broke; Europe is facing a weak Euro. China, the U.S. and some nations in Europe are Korea’s major trading partners.

The world may be in a deflationary spiral.

The current economic conditions may have the significant impact on Korean corporations that do business in Europe, the U.S., Japan, and China in the short and long term.

One needs to get the big picture and take the long view.