Korea’s economy has produced what must be considered as weaker than expected data. Firstly, Korean companies had an over-exuberant attitude regarding to the prospects for a global economic recovery in 2014-5, leading them to employ and invest too much in the beginning of 2014. Secondly, Korea is struggling with a heavy historical debt burden and crucially we believe the real exchange rate is too demanding. The authorities’ efforts to revitalize the economy have produced little in the way of positive results, with the possible exception of the property markets. If Korea truly wishes to boost its economy and – most importantly of all – reflate corporate profits, then we believe that the authorities will soon have to enter the global currency depreciation cycle more aggressively.