Korean shares lag far behind US stocks in performance

Published : Mar 10, 2017 - 10:54 Updated : Mar 12, 2017 - 13:44

South Korea's main index rose 80 percent in the past eight years, but still lags far behind US stocks' performance during the same time, the country's main bourse said Friday.

The benchmark Korea Composite Stock Price Index reached 2,091.06 on Wednesday, jumping from 1,161.56 marked on Dec. 16, 2008, when the US cut its key interest rate to zero, according to data from the Korea Exchange and the Korea Center for International Finance.

Korean shares are lagging behind US stocks in performance (Yonhap)

During the same period, the Dow Jones Industrial Average jumped by 134 percent and the tech-heavy NASDAQ soared 267 percent. Even stocks in major emerging markets, such as Indonesia and Thailand, performed better than Seoul stocks in the eight years, the data showed.

The US Federal Reserve has taken quantitative easing steps following the 2008 global economic crisis to bolster the economy.

The Fed raised borrowing costs to a target range of 0.25 percent to 0.5 percent in December 2015.

In December 2016, the Fed raised its key rate by a quarter of a percentage point to a target range of 0.5 percent to 0.75 percent.

At least three rate hikes are likely this year.

Only Chinese and Taiwan stocks performed worse than South Korean shares in the past eight years. The Shanghai Composite Index gained 64 percent, and Hong Kong's benchmark Hang Seng Index rose 57 percent. (Yonhap)