Now that the national current account is in surplus, the ladies discuss the stock market and mutual funds - specifically, the 15 funds bearing the Buy Korea name. In Korea, housewives have big savings at their disposal and we are trying to tap these to speed up economic recovery. Critics cite another reason. They allege that some Buy Korea funds are underperforming because they are being used to prop up the share prices of Hyundai companies. To recapitalize, Hyundai companies are making cash calls through rights issues.
Nobody knows what they are buying or selling.
Last month, the government launched an investigation to find out whether Buy Korea violated laws when it purchased related securities and allowed cash-strapped Hyundai companies to use some of its cash. Nearly half have never directly participated in the stock market. Seven of ten are women, most of them homemakers in charge of investing household savings. The rest are typically unemployed men looking for juicy profits from their severance payments. Korean housewives had their confidence in the system shaken.