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'Korea's Dr. Doom' Kim Young-ik Warns of Market Downturn, Advises Reducing Equity Exposure
Finance · Investment Managers · yonhap_finance · 2026-09-05
Professor Kim Young-ik, known for predicting the 2008 financial crisis, warns that the Korean stock market has entered a downward phase and urges caution.
What Happened
Market Outlook: Professor Kim Young-ik asserts that the KOSPI has moved past its peak and entered a bearish phase, predicting a difficult market environment at least through the first half of next year. He bases this assessment on the cyclical component of the leading economic index, which he believes peaked in August.
Investment Strategy: Kim revealed that he has reduced his equity exposure from 60% to approximately 20% of his financial assets to manage risk. He emphasizes that in the current climate, preserving capital is far more critical than seeking aggressive returns, and he has utilized inverse ETFs as a hedging tool.
US Market View: Regarding the US market, Kim anticipates a significant correction in the fourth quarter, citing indicators like the Buffett indicator. He warns of a potential decline of at least 30%, driven by signs of weakening consumer spending, which serves as a pillar of the US economy.
Professional Activities: Currently affiliated with Hanyang University and his own economic research institute, Kim continues to share his proprietary economic forecasting models via YouTube and seminars. He maintains his long-standing commitment to providing investor-focused insights, a philosophy he developed during his tenure at securities firms.