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The 72-Hour Report: How South Korea is Navigating Uncharted Territories After S&P's U.S. Debt Downgrade

The 72-Hour Report series will attempt to provide a chronicle of the impact of the U.S. credit rating downgrade by S&P in South Korea, one of the most important financial centers of the world. Golden Networking's Public Finance Leaders Forum 2011, "Navigating Uncharted Territories After S&P's U.S. Debt Downgrade from its Gilt-Edged AAA Credit Rating" (www.PublicFinanceLeadersForum.com), September 9, New York City, will provide attendees with the first analysis of the consequences of this unprecedented step by one of the leading rating agencies.

 

Since August 3, 2011, the South Korean market has lost 17 percent on the stock market in the past six trading days, almost 200 billion. South Korea could not avoid this global market rout. The main Seoul stock index (KOSPI) finished down 3.6%, at 1,801.35, on Tuesday. This is the weakest close since last September. From the estimated analysis, the KOSPI has lost $193 billion in market value in the past six trading days. Another significant index, the Korean Exchange 100 Index, declined 3.61%, to 3,789.53. However, Bank of Korea sees no big impact from U.S. Rating cut. The KOSPI went up 0.27%, at 1806.24; KOSDAQ increased 4.77%, at 453.55.

 

It is expected that this change will stop in a few weeks. The South Korean Financial Services Commission announced a bid to ban short selling of shares this Tuesday, attempting to stem losses in the markets. The South Korean Central Bank will still hold interest rates in this volatile market, said Kim Choong-Soo, the Bank of Korea Governor. "Markets have already had a few scenarios on the U.S. ratings and this was one of them, I think," head of the South Korean central bank's foreign exchange reserve management group, Hong Taeg-ki, told Reuters."An AA rating has no difference from AAA when it comes to the risk weighting of assets held by investors according to the Basel III guidelines and therefore there will be no big direct impact in the short run. And there is no alternative (to shift to)."

 

Public Finance Leaders Forum 2011 is produced by Golden Networking (www.goldennetworking.net), the premier networking community for business executives, entrepreneurs and investors. Upcoming Golden Networking's Forums and Business Receptions include:

 

             High-Frequency Trading Happy Hour New York (www.hfthappyhour.com), August 9th, New York City

 

             High-Frequency Trading Happy Hour Chicago (hfthappyhourchicago.eventbrite.com), August 23rd, Chicago

 

             High-Frequency Trading Happy Hour Hong Kong (hfthappyhourhongkong.eventbrite.com), August 25th, Hong Kong

 

             High-Frequency Trading Happy Hour Singapore (hfthappyhoursingapore.eventbrite.com), August 25th, Singapore

 

             Public Finance Leaders Forum 2011 New York, "Navigating Uncharted Territories After S&P's U.S. Debt Downgrade from its Gilt-Edged AAA Credit Rating" (www.PublicFinanceLeadersForum.com), September 9, New York

 

             High-Frequency Trading Leaders Forum 2011 Hong Kong , "How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World" (hftleadersforumhongkong.eventbrite.com), September, 19-21, Hong Kong

 

             High-Frequency Trading Leaders Forum 2011 Chicago, "How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World" (hftleadersforumchicago.eventbrite.com), October 3-5, Chicago

 

             China Leaders Forum 2011 New York, "How American Companies Can Plug into the Chinese Rocket-Propelled Economy?" (www.ChinaLeadersForum.com), October 7, New York

 

             High-Frequency Trading Leaders Forum 2011 Sao Paulo, "How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World"

(hftleadersforumsaopaulo.eventbrite.com), October 24-26, Sao Paulo, Brazil

 

             High-Frequency Trading Leaders Forum 2011 Singapore, "How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World" (hftleadersforumsingapore.eventbrite.com), November 13-15, Singapore

 

Golden Networking has compiled the insights of top experts and industry practitioners and produced DVD Video Packages for its Leaders and Experts Forums, including:

 

             High-Frequency Trading Experts Workshop, "Practical Implementation of High-Frequency Trading Strategies", www.HFTExpertsWorkshop.com

 

             2nd China Leaders Forum DVD Video Package, "Is the Chinese Dragon Poised for Global Dominance or Economic Implosion?", www.ChinaLeadersForum.com

 

             Distressed Investing Experts Forum 2010 DVD Video Package, "Analyzing and Valuing Distressed Companies, Securities and Real Estate", www.DistressedInvestingExpertsForum.com

 

             Derivatives Leaders Forum 2010 DVD Video Package, "Strategies for Increasing Profits under an Evolving Regulatory Framework", www.DerivativesLeadersForum.com

 

             High-Frequency Trading Leaders Forum 2010 DVD Video Package, "Innovating and Profiting from High-Frequency Trading in 2010 and Beyond", www.HFTLeadersForum.com

 

             Hedge Funds Leaders Forum 2010 DVD Video Package, "Generating Alpha in Challenging Times", www.HedgeFundsLeadersForum.com

 

             High-Frequency Trading Experts Forum 2010 DVD Video Package, "Starting and Running a High-Frequency Trading Operation", www.HFTExpertsForum.com

 

             Distressed Investing Leaders Forum 2010 DVD Video Package, "Extraordinary Opportunities Investors Cannot Afford to Pass", www.DistressedInvestingLeadersForum.com

 

             China Leaders Forum 2009 DVD Video Package, "Addressing the Challenges Posed by the Present Wave of Chinese Globalization", www.ChinaLeadersForum.com

 

             Distressed Investing Leaders Forum 2009 DVD Video Package, "The Most Comprehensive Guide for Any Investor in Distressed Assets", www.DistressedInvestingLeadersForum.com

 

Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to info@goldennetworking.net. Golden Networking has been frequently featured in the press, including recent articles in The Wall Street Journal, "Happy Hour for High-Frequency Trading", The New York Times, "Golden Networking Helps Job Seekers Make Overseas Connections", Los Angeles Times, "Speed-addicted traders dominate today's stock market", Reuters, "Revamp looms as trading experts huddle at SEC" and Columbia Business School's Hermes Alumni Magazine, "10 Under 10".