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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailInvestment management firm discusses the limitations of South Korea's 'value up program'Jonathan Pines, head of Asia ex Japan equity at Federated Hermes, discusses how the program will affect sectors.
Persons: Jonathan Pines Organizations: Email Investment, Federated Hermes Locations: Asia, Japan
An inflatable bull during a ceremony marking the first day of trading of the year at the Korea Exchange (KRX) headquarters in Seoul, South Korea, Tuesday, Jan. 2, 2024. SeongJoon Cho/Bloomberg via Getty Images Bloomberg | Bloomberg | Getty ImagesSouth Korea's Japan-style measures for improving corporate governance may not be enough to boost its undervalued stock markets and tackle the so-called "Korea discount." Asia's fourth-largest economy is striving to boost stock market valuations that are considered much lower compared to peers, with analysts referring to the phenomenon as the "Korea discount." The 'chaebol' problemSouth Korean markets are made up of corporations called "chaebols," which are large family-owned global conglomerates, typically controlled by the founder's family. "The behavior that leads to South Korea's low stock prices is motivated, and therefore seeking to coax South Korean controlling families into 'being nice' to minority stockholders is unlikely to be successful," Pines said.
Persons: SeongJoon Cho, James Lim, Jonathan Pines, Federated Hermes, Daniel Tan Organizations: Korea Exchange, Bloomberg, Getty Images Bloomberg, Getty, Financial, FSC, Samsung Electronics, LG, SK, Hyundai, Dalton Investments, Japan, Korean Stock Exchange, Federated, Grasshopper Asset Management, CNBC Locations: Seoul, South Korea, Japan, Korea, Tokyo, Asia, Singapore
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSouth Korea needs to do more to tackle the 'Korea discount,' says financial services firmJonathan Pines of Federated Hermes discusses the country's measures to reduce the "Korea discount" on stock prices, saying they "fundamentally misunderstand the incentive of those that control 80% of Korea's companies."
Persons: Jonathan Pines, Federated Hermes Organizations: Federated Locations: Korea
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe like Korean stocks because they are so cheap, but more corporate governance reforms are neededJonathan Pines from Federated says corporate government is gradually improving in South Korea, but a lot more needs to be done. More importantly, the regulators need to step in.
Persons: Jonathan Pines Organizations: Federated Locations: South Korea
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