@article{ART003306005},
author={Jieun Kim and Zoonky Lee and Dojoon Park},
title={Do Political News Affect Financial Markets? Evidence from Exchange Rate and Investor Trading Behavior in Korea},
journal={Journal of The Korea Society of Computer and Information},
issn={1598-849X},
year={2026},
volume={31},
number={2},
pages={241-248},
doi={10.9708/jksci.2026.31.02.241}
TY - JOUR
AU - Jieun Kim
AU - Zoonky Lee
AU - Dojoon Park
TI - Do Political News Affect Financial Markets? Evidence from Exchange Rate and Investor Trading Behavior in Korea
JO - Journal of The Korea Society of Computer and Information
PY - 2026
VL - 31
IS - 2
PB - The Korean Society Of Computer And Information
SP - 241
EP - 248
SN - 1598-849X
AB - This study examines the influence of political news related to the issue of martial law on the foreign exchange rate and trading behavior of different investor groups (institutional, individual, and foreign) in Korean stock market. Political news articles from major South Korean and U.S. media outlets were collected and analyzed using GPT-4o API-based prompt engineering for sentiment analysis. Regression results indicate that the constructed weekly sentiment index significantly affects the KRW/USD exchange rate. Institutional investors tend to buy stocks when sentiment is positive and sell when it is negative, whereas retail investors exhibit the opposite pattern. Foreign investors did not show a statistically significant response to political sentiment. Overall, the findings demonstrate that political news sentiment influences both the exchange rate and investor trading behavior.
KW - Political News;Sentiment Index;Exchange Rate;Investor Trading Behavior;GPT-4o
DO - 10.9708/jksci.2026.31.02.241
ER -
Jieun Kim, Zoonky Lee and Dojoon Park. (2026). Do Political News Affect Financial Markets? Evidence from Exchange Rate and Investor Trading Behavior in Korea. Journal of The Korea Society of Computer and Information, 31(2), 241-248.
Jieun Kim, Zoonky Lee and Dojoon Park. 2026, "Do Political News Affect Financial Markets? Evidence from Exchange Rate and Investor Trading Behavior in Korea", Journal of The Korea Society of Computer and Information, vol.31, no.2 pp.241-248. Available from: doi:10.9708/jksci.2026.31.02.241
Jieun Kim, Zoonky Lee, Dojoon Park "Do Political News Affect Financial Markets? Evidence from Exchange Rate and Investor Trading Behavior in Korea" Journal of The Korea Society of Computer and Information 31.2 pp.241-248 (2026) : 241.
Jieun Kim, Zoonky Lee, Dojoon Park. Do Political News Affect Financial Markets? Evidence from Exchange Rate and Investor Trading Behavior in Korea. 2026; 31(2), 241-248. Available from: doi:10.9708/jksci.2026.31.02.241
Jieun Kim, Zoonky Lee and Dojoon Park. "Do Political News Affect Financial Markets? Evidence from Exchange Rate and Investor Trading Behavior in Korea" Journal of The Korea Society of Computer and Information 31, no.2 (2026) : 241-248.doi: 10.9708/jksci.2026.31.02.241
Jieun Kim; Zoonky Lee; Dojoon Park. Do Political News Affect Financial Markets? Evidence from Exchange Rate and Investor Trading Behavior in Korea. Journal of The Korea Society of Computer and Information, 31(2), 241-248. doi: 10.9708/jksci.2026.31.02.241
Jieun Kim; Zoonky Lee; Dojoon Park. Do Political News Affect Financial Markets? Evidence from Exchange Rate and Investor Trading Behavior in Korea. Journal of The Korea Society of Computer and Information. 2026; 31(2) 241-248. doi: 10.9708/jksci.2026.31.02.241
Jieun Kim, Zoonky Lee, Dojoon Park. Do Political News Affect Financial Markets? Evidence from Exchange Rate and Investor Trading Behavior in Korea. 2026; 31(2), 241-248. Available from: doi:10.9708/jksci.2026.31.02.241
Jieun Kim, Zoonky Lee and Dojoon Park. "Do Political News Affect Financial Markets? Evidence from Exchange Rate and Investor Trading Behavior in Korea" Journal of The Korea Society of Computer and Information 31, no.2 (2026) : 241-248.doi: 10.9708/jksci.2026.31.02.241
