No substantial investments in Korea: Tyche Group

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Post the stellar Wall Street cues, Asian markets are not showing much gains and it's a mixed picture across Asia. Martin Hennecke, Senior Manager at Tyche Group on answering a query about his take on Korean markets informed CNBC-TV18 that they did not have any substantial investments in Korea. Most of our exposure is within China and a number of other Asian markets said Hennecke.

Here is a verbatim transcript of the interview with Martin Hennecke on CNBC TV-18. Also see the accompanying video.

Q: Let's start-off with the Korean markets what is your opinion on Friday -at the outset of Friday there seemed to be some gains but those were frittered off? What is your take on the Korean market positive or still negative?
 
A: We haven't really been investing in Korea to any substantial degree. We have had most of our exposure within China and then a number of other Asian markets. With the Korean economy one of the problems is its high exposure to the export sector and of course with Europe and the United States they are crumbling right now, so that's a problem.

Then there is also higher indebtedness of private households, much credit card debt and so on. So I would still say one should exercise caution because now it's also been discussed the risk of South Korea's sovereign debt and that really could be a substantial risk.

So in Asia, we just stay with our main exposure in China and take advantage there where the government still is in a very strong position, as are the private households and the currency as well.