South Korea faces challenges in unlocking corporate value due to family-controlled businesses, leading to lower stock valuations.

South Korea faces challenges in unlocking corporate value, similar to Japan, due to family-controlled businesses, or chaebols, which often keep stocks undervalued. The Korea Discount phenomenon results from this, causing Korean stocks to trade at a lower valuation. South Korean officials are looking to Japan for guidance on corporate reforms, but the lukewarm market response to Korea's "Corporate Value-up Program" indicates that efforts to improve governance are falling short.

March 02, 2024
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