While U.S. Democratic presidential candidate Joe Biden hasn't officially won the US presidency, as of this writing, he is the heavy favorite. A local securities firm predicted on November 5th that South Korea would benefit greatly if Biden is elected as president.
Lee Sang Jae, a researcher at Eugene Investment & Securities, stated, "If Biden is elected, the global economy will benefit positively unlike the Donald Trump era," in a report titled 'The 46th U.S. President Biden Possibility: A Global Economic Relief Factor.'
Researcher Lee Sang Jae added, "Unlike the Trump administration, there is a possibility that the era of the U.S.-China hegemonic war will take a principled response that induces changes in China rather than unnecessary friction such as tariff hikes and corporate regulations. The Chinese government is also likely to be more cooperative with Biden than during the administration period of Trump."
In addition, he stated, "We expect a positive effect on the Korean economy if Joe Biden takes office." Analysts say that the value chain of trade between South Korea, China, and the U.S. could make a great recovery under Biden. The researcher stated, "Korea's exports are resilient to global trade. If global trade recovers under Biden's presidency, Korean exports will break away from the adverse growth of the past two years. The controversy between South Korea and the U.S. over the share of U.S. defense costs in South Korea will also be resolved."
Meanwhile, Eugene Investment & Securities predicted that the U.S. dollar index will fall, and the KRW-USD exchange rate will fall below the 1,100 KRW per USD mark.