K-Discount - Chaebols and National Pension Service

The article titled “Korea Discount” penned by Kim Kyung-rim and Kim Hak-seong for Yonhap Infomax  discusses the persistent undervaluation of South Korean stocks compared to their global counterparts, often referred to as the “Korea Discount.” This phenomenon is attributed to various factors, including corporate governance issues, geopolitical risks, and regulatory challenges. The report highlights efforts by the South Korean government and companies to address these issues, such as improving transparency, enhancing shareholder rights, and adopting global best practices. Despite these efforts, the article notes that significant challenges remain in fully closing the valuation gap and achieving fair market recognition for Korean companies. The piece also references insights from a SquareWell’s latest insight called “Addressing the Discount” on the potential for future improvements and the importance of continued reforms to boost investor confidence and market performance.

The full article can be accessed here.