The truth behind the 'Korea discount'

The best time to invest is when the market is unloved

clock • 4 min read

It is easy to feel disheartened by the Korean equity market. It has underperformed other Asian equity markets over the last couple of years and for good reason.

Its export-driven economy is sensitive to the cyclical slowdown in the memory semiconductor sector ,which has negatively affected corporate earnings. It is not immune to slowing Chinese growth and the trade spat between the US and China given its exposure to manufacturing supply chains. On the domestic front, Korean government policy has not been market friendly and corporate governance generally is far from best in class. So, why are we overweight South Korea?  As a contrarian investor focssed on long-term returns, I feel the best time to invest is when the market is unloved. From...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Partner Insight: Navigating a new era for investing

Partner Insight: Navigating a new era for investing

Across the developed world, inflation is back and here to stay, says Wellington Management’s John Butler.

Sarka Halas
clock 13 March 2024 • 2 min read
Partner Insight: Should investors go global for more impact?

Partner Insight: Should investors go global for more impact?

Global investing offers scope for broader social impact as well as financial returns.

Sarka Halas
clock 11 March 2024 • 1 min read
Women in Investment Awards winner interview: Omotunde Lawal from Barings

Women in Investment Awards winner interview: Omotunde Lawal from Barings

Supporting the next generation

Katrina Lloyd
clock 07 March 2024 • 1 min read
Trustpilot