risk. Market risk arises from currency risk, interest rate risk and fair value risk associated with investments etc. The company has a risk management program in place to monitor and actively manage such risks. In this report, our group will be focusing on the currency risk/ foreignexchange risk of the market risk.
The company operates primarily in Korean Won (KRW) and its official accounting r
rapid growth since 1963. Real GNP grew at an average annual rate of 9.0 percent between 1963-93. As a result, Korea's status changed from an underdeveloped country in the 1960s to an upper mid-level developing country in the 1990s. It is well known that foreign debt and the government's active economic policy played an important role in her economic growth. Korea's successful pursuit of an
account surplus will remain high this year despite a more rapid recovery of imports than exports (associated with the rebound of intermediate goods assemble in China). Foreignexchange reserves will thus remain very high.
Banking risk, however, has been increasing. After successive reductions of interest rates and the lifting of quotas on loans, the expansion of credit accelerated significantly
exchange rate for their own currency. According to Guido Mantega, a global currency war broke out in 2010. This view was echoed by numerous other financial journalists and government officials from around the world. Other senior policy makers and journalists have suggested the phrase "currency war" overstates the extent of hostility, though they agree that a risk of further escalation exists. Thi
of strong growth between 2004 and 2007 is a factor.
PAYMENT INCIDENT INDEX
▪ A country of High CR: China
▪ RISK ASSESSMENT
Good resilience in 2009 thanks to the economic stimulus programme with a rebound expected in 2010
The economy began to slow in 2008 due mainly to domestic imbalances (overcapacity in several sectors) and policies that remained restrictive too