Could South Korea be the new Japan for dividends?

Improving corporate dynamics

South Korean companies could follow in the footsteps of neighbour Japan by improving corporate governance and shareholder-friendly policies, according to Matthews Asia manager Yu Zhang.

The manager of the Matthews Asia Asia Dividend fund said he is holding a large weight to the country as an alternative way to access growing companies, now that Japan has made improvements in corporate culture. Japan has historically had poor corporate dynamics but has made changes in recent years under Prime Minister Shinzo Abe, who has implemented workplace reforms. These encourage companies to return cash to shareholders and conduct share buybacks, as well as welcome women into the workplace. Could Japanese corporates emerge as the 'global exemplar' for dividends? Zhang said:...