Well, the KOSPI has been persistently underperforming the S&P500 all year, but it certainly is not without the company of most global stock indexes.
On a nominal basis, the KOSPI has failed to breakout to new cycle highs, however.
We wonder how much of this underperformance is due to added pricing pressure from Japan as a result of the yen's depreciation over the last year. For now the yen has stopped its depreciation relative to the won, but it's largely up to the BOJ to determine how long this lasts. South Korean manufacturing would certainly stand to benefit from a stabilization of the yen.
