Why would that cause South Korea’s currency to tumble? I could imagine it might cause it to go up.
“Why would that cause South Korea’s currency to tumble? “
War.
L
Destabilizing the regime. Kim is a known quantity. There are some worse belligerent kooks in that menagerie. They might literally start a war if Kim dies.
Dont stock markets drop during times of great uncertainty?
If that guy dies, who knows who takes his place?
Maybe the ones who push him to his bellicose attitude?
S. Koreans might know who is closest to assuming the role...so start hedging their investment in the near future.
I’d guess the assumption is that China will increase it’s influence in NK, and be able to make it harder on our ally.
What is the one thing that no market likes?
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.
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Uncertainty.
After all: Better the devil you know, than...
Regards,
Instability - flood of refugees, danger of power struggle there etc.
As mentioned, markets don’t like uncertainty.
2 reasons I can think of. One is a seriously destabilized at least rudimentary nuclear power a few kilometers away from your largest city with an epic power struggle going on. The second is a likely flood of starving uneducated literally dirt poor refugees flooding across your border for you to try to feed, house, and assimilate into modern culture.