Recent investment rejection by Warren Buffett, the head of Berkshire Hathaway, has had a major impact on the Asian economy. Buffett's investment in the five major Japanese trading companies has brought him a profit of 8 billion dollars (about 1.25 trillion won). This phenomenon, known as the "Buffett Effect", is causing a ripple effect in the economies of Asian countries, including India and Korea, and is stimulating positive economic growth.

Buffett's massive investments in the five major trading companies in Japan, including Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo, took place in 2020. At the time, Buffett's investment decision injected life into the Japanese economy, which was struggling with recession and an aging population. The value of the trading companies in which Buffett invested surged, and the Nikkei average share price index even surpassed its historical high set in 1989.

However, the root cause of the rise in Japanese stock prices was not due to Buffett, but rather to the Bank of Japan's negative interest rate policy, the massive depreciation of the yen, and Japan's corporate governance reform. These policies bore fruit, improving the performance of Japanese companies and boosting the investment sentiment of foreign investors.

Nevertheless, Buffett's "jackpot" investment strategy has stimulated Asian neighboring countries. In particular, Buffett's recent statement to Indian Prime Minister Narendra Modi, "There are many opportunities in a country like India," has created high hopes for the Indian economy. Prime Minister Modi has also been ambitious in his efforts to make India a global manufacturing center through his "Make in India" manufacturing promotion policy since his inauguration in 2014. Therefore, Buffett's statement has given wings to his policy.

In fact, Buffett's "praise" for India is having a significant impact. Investors interested in India have begun to see potential opportunities in Modi's economic policies, and Modi's government is trying to benchmark Japan's policies, which Buffett has made successful, in order to innovate businesses. As a result, global investment bank Jefferies predicts that India's stock market capitalization will reach 10 trillion dollars (about 1,504 trillion won) by 2030, increasing expectations for a surge in the Indian economy.

Meanwhile, this Asian economic restructuring wind, triggered by the "Buffett Effect", is also affecting Korea. Buffett's success in Japanese trading company stocks has prompted the Korean government and businesses to pursue business innovation that meets international standards. There is a growing awareness that transparent and efficient business operations are essential to keep pace with the rapidly changing global economic environment.

These developments, including the changes in Japan's government and businesses, and the rise of emerging economies in Asia such as India, are not simply the result of one person's investment, but rather a sign of the times, a reorganization of the global economic structure. Buffett's foresight has merely served as a catalyst. The key question now is how much each country can actively participate in this wave of change.