The stock market will turn its ears on the latest round of trade talks between the United States and China slated for Tuesday, and the Federal Reserve’s monetary policy decision on Thursday. For KOSPI, investors will focus on whether Japan’s decision on August 2nd to possibly remove South Korea from its white list of trusted buyers, which could have ripple effect on a broad range of sectors. Rising uncertainties from Japan’s decision can have negative consequences for the local stock market. Earlier this month, U.S. credit rating agency S&P Global Ratings slashed its growth forecast for South Korea to 2% from 2.4%. The slowdown could deteriorate further, dragged down by Japan, whose export curbs have spotlighted the South Korean economy’s overwhelming reliance on trades to China. Until 2008, the Kospi moved nearly in tandem with the GDP readings of Group of 20 countries, since then, the index has under-performed G-20 GDPs. But many experts have voiced concerns that South Korea is growing excessively dependent on China and experts have advised the South Koreans to expand into an infrastructure projects around the world instead of being dependent on exports. In North America and Europe there is strong demand for rebuilding airports, highways and other aging infrastructure. If South Korean were to participate in such projects, they could improve the macro data and further increase their exports to advanced countries. KOSPI have remained stable since Japan announced its export controls and BOKs’ latest round of interest rate cut have eased the pressure. But even with stimulus measures, foreign institutional investors, who own more than 30% of South Korean stocks, are hesitant to buy because if South Koreans fails to implement drastic reform, investor sentiment will deteriorate which in turn under-perform other global indexes.