20260817 Domestic Economic Issues

Domestic Economic Issues Defense of Q2 Corporate Earnings and Stock Price Support Due to Export Boom As the export boom in major flagship products such as semiconductors and automobiles continues, the earnings defense capabilities of listed companies are being proven. Despite concerns about a global economic slowdown, foreign capital inflows are continuing, focusing on leading stocks with strong earnings momentum. Attempt to Stabilize USD/KRW Exchange Rate in the Mid-1,370s The upward pressure on the USD/KRW exchange rate has significantly eased due to the slowdown in US dollar strength and the inflow of domestic export settlement funds. The foreign exchange market is watching the Jackson Hole meeting results, showing limited movement in the mid-1,370s. Increase in Mortgage Rates by Commercial Banks and Household Debt Management As financial authorities continue to raise additional interest rates to curb the increase in household debt, it is acting as a burden on the recovery of domestic consumption. On the other hand, banks are maintaining a stance to defend interest income due to the widening spread between deposit and lending rates.