Caterpillar Macro: It is unlikely that the rise in the South Korean stock market will boost the overall economy.

Kerry Macro stated in a report that the prosperity of the South Korean stock market is unlikely to boost domestic demand or the overall economy. Economist Gareth Leather said that although theoretically, a stock market surge could make consumers feel wealthier and more willing to spend due to the rise in asset values, this effect is very weak in South Korea. Household wealth is still mainly concentrated in real estate rather than financial assets, and real estate prices have remained stable for many years. Furthermore, with the favorable factors brought by consumer subsidies gradually fading, the short-term consumption prospects remain poor. However, Leather does not believe that this current market surge is insignificant for the economy. "This surge reflects South Korea's core role in the global AI cycle and suggests that future exports will grow strongly, despite weak domestic demand."