By Kim Yon-se
Staff Reporter
Foreigners could reap better-than-expected gains from their investment in Korean shares, thanks to the prevalent theory of an ``economic crisis'' over the past few years, a presidential aide said.
In a report on the stock market, Lee Seung-woo, presidential secretary for economic policy, blamed the economic crisis theory.
Insisting opposition parties and conservative newspapers continue issuing the groundless theory, Lee said only domestic investors suffer comparative losses, by hesitating to invest in the stock market.
``Foreign investors enjoyed gains of more than 100 trillion won from a surge in stock prices and dividends between 2005 and 2006,'' he said. ``In contrast, Korean investors, who believed the theory from opposition parties and conservative newspapers, lost investment opportunity.''
The opposition parties that issued the theory include the Grand National Party (GNP). Among the theory-supporting newspapers are Chosun Ilbo, JoongAng Ilbo and Dong-a Ilbo, according to Lee.
He quoted articles, editorials and columns of Chosun, JoongAng and Dong-a, and said, ``According to their news reports, the economy was in a crisis even after the KOSPI exceeded the record high of 1,000 points.''
JoongAng Ilbo said in its editorial published April 28, 2006, the government and the public have failed to recognize the crisis while the economy has faced a crisis. Chosun Ilbo described the Korean economy as a sinking one, in its March 28, 2007 article.
Parties, including the GNP, criticize the Roh Moo-hyun administration, arguing that the economic slowdown since 2003 was attributable to the incompetence of Cheong Wa Dae's economic policy team and economy-related ministries, and they brought about a crisis.
Lee said, ``As a result, the majority of blue chips are held by foreigners,'' adding he is doubtful whether the opposition parties and the newspapers paid any contribution to the recent bullish stock market.
The KOSPI has broken through the all-time high 1,600 mark and foreigners hold a 84.8 percent stake in Kookmin Bank; 84.5 percent in Hyundai Motor; 81.7 percent in Korea Exchange Bank; and 79.5 percent in Samsung Electronics.