The State of The Investment Market and Scam prevention Methods
Seoul’s economy in Korea has been growing even during the global financial crisis in 1998 and has maintained its stability since then. It is dominated by chaebols or more commonly known as family-owned conglomerates. However, Global Asset Managements’ world-renowned economists and financial experts believe that this dominance is unlikely and could not support Korea’s next generations’ economic growth.
The factors that brought them to this idea are the ability of their successors or heirs to keep track of their company’s assets that supposedly can save their companies money and time, and two the ability to handle an essential task of making these assets earning.
Global Asset Management world-class team in Korea has seen the need of companies and investors for their expertise in maximizing the assets of the company to gain the best returns for their stakeholders, including asset recovery. Business owners and investors can make sound decisions in managing their assets and maximize possible returns.
Global Asset Management Korea can further provide professional advice to businesses and investors in handling their wide range of assets, including fixed and liquid assets, with their regular and updated industry analysis. Below are other services that Global Asset Management can offer in Seoul, Korea.
Understanding Investment Risks in Seoul, Korea
Investing in Seoul, South Korea involves a lot of risks and potential scams. Generally, both systematic or risks related to a specific investment and nonsystematic or business and industry risks are present in this market too. However, there is no need to panic.
Nonsystematic risks in Seoul
Business and country risks are considered low in Seoul or in Korea as a whole. The business climate is relatively excellent. Corporate financial information is readily available and reliable, keeping corporate default on a low average probability of occurrence. Their debt collection system is efficient. Organizational quality is outstanding, and thus, intercompany transactions operate steadily. As a result, the country’s political and economic shape is good.
Nonetheless, a basically stable and efficient business environment will always need improvement. Geopolitical is at high risk, given their relationship with one of the most militarized countries globally, North Korea. Industry risks are on average, although their increased reliance on their export industry is detrimental also, especially when the global economy is contracting. Assuming these risks in Seoul are tolerable compared to other developing countries.
Systematic risks in Seoul
Every investment, whether in Korea or not, involves a built in systematic risk. This no one can erase or undo but should be appropriately managed, including the interest rate risks associated with changing interest rates, the credit risks associated with the creditworthiness of the company issuing bonds, inflation risks related to the pace of inflation rates, volatility, and so on for bond investments.
Investments are naturally risky, especially in a world full of scams, wherever you are, and whenever you want to invest. The level of risk is the difference. In Seoul, nonsystematic investment risks are low, while systematic risks and scams are manageable. With trusted portfolio managers like Global Asset Management who are committed to excellence, these seemingly intimidating and complex risks are simplified, and investors can be at peace.
Risk management planning and implementation
With Global Asset Management, investors in Seoul and all over the world can manage these risks safely and successfully. An investor or business owner can entrust the responsibility of implementing a tailor-fit risk management plan connected with the use and ownership of their assets. Properly assessed assets will help identify the risks involved and come up with either a solution to avoid them or lessen the impact when events are avoidable.
With the unique combination of traditional values and modern technology of the Global Asset Management professional team, nonsystematic risks may be lowered if not eliminated. Depending on the clients’ long-term goals, the formal quotation “Do not put all your eggs in one basket” may be applied. An investor can purchase stocks from multiple stable companies from different industries to eliminate the risk associated with one business or one industry. Say, in one of the companies you invested, management makes poor decisions that paved to low income, resulting in declining their stock price and loss to you as an investor. However, you may not feel too much loss because many of your investments are still earning. This can be made with the purchase of an ETF or exchange-traded funds that provide instant diversification of funds. In Korea, ETF investors can consider the following:
- iShares MSCI South Korea Index Fund (EWY)
- Asia Pacific Ex-Japan AlphaDEX Fund (FPA)
- First Trust South Korea AlphaDEX Fund (FKO)
- FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF)
Another way of investing with diversification in Korea is through ADRs or American Depository Receipts. With ADRs, investors may invest in South Korean companies on a US stock exchange. However, these companies may not be as liquid and, thus, must be traded with due diligence. South Korean ADRs to consider are the following:
- KB Financial Group Inc. (KB)
- LG Display Co., Ltd. (LPL)
- SK Telecom Co., Ltd. (SKM)
Proper Investor Mindset
An investment portfolio advisor understands that there are three types of investors in Korea. The pre-investor or those who have no or have minimal idea about investments, the passive investor or those who have the basic understanding of investments and personal financial planning, and the active investors or those who have fully embraced investments and works actively on reaching their financial goals. Each type of investor is approached differently and has different behavior towards investments. Global Asset Management has hastened its advisors on adequately engaging with them as their focus on maintaining a relationship with them and helping them reach their goals. To do so, advisors must teach to their clientele the proper investor mindset of, in investment, we make money work for us.
With well-balanced folio diversification, investors are in their best positions. This will allow them to buy more when funds are available or realign weightings if deemed necessary. Depending on the investors’ objectives, the seasoned folio managers of Global Asset Management can employ strategies for new or experienced investors to achieve their goal of financial security even during market instability.
However, currently, scam is everywhere, so trusting is so tricky. That is why getting professional help with our investment activities is necessary. After all, our hard-earned money is handled here, and this is about our goals. We cannot afford to take one wrong move.