본문으로 바로가기

KIEP Opinions

Publications

To list

Portfolio Investment: A Driving Structural Factor behind Recent Financial Turmoil

  • Author Young Sik Jeong
  • Series260
  • Date2023-03-31
One of the structural changes in global fund flows and the financial industry since the global financial crisis in 2008 has been the significant increase in portfolio investments. This accompanies two major implications in terms of systemic risk. Firstly, financial institutions and systems have become vulnerable to market risks, as evidenced by recent cases of financial turmoil such as the Korean Equity Linked Securities (ELS) crisis, the collapse of Archegos Capital Management, the UK pension crisis, and the bankruptcy of Silicon Valley Bank (SVB). Secondly, the possibility of financial instability through cross-border capital flows has increased. Therefore, Korea needs to address these potential risks by strengthening the supervision of market risks and foreign currency liquidity.
File
  • pdf 첨부파일 KIEP Opinions_no260(수정).pdf (212.74KB / Download:424) Download

Prev Next List