FLKR - FLKR: Korea Could Be This Year's Sleeper Hit As 'Value Up' Catalyst Looms
2024-02-15 13:58:25 ET
Summary
- Coming off a challenging few years, Korea could finally be set for a change in fortunes.
- At the head of the catalyst pipeline is a Japan-like ‘value up’ program to unlock the perennial ‘Korea discount’.
- FLKR stands out not only on cost and diversification but also for its leverage to Korea’s big reform tailwinds.
South Korean President Yoon's administration continues to live up to its shareholder-friendly stance. Having made strides to better align Korean capital market accessibility with global standards post-election, the country is moving ever closer to inclusion in global developed market indices (currently watch listed by both FTSE Russell and MSCI). Since then, the government has added capital gains taxes to its reform pipeline and, perhaps most interestingly, a corporate 'value up program' to address the perennial Korean equity 'discount.' Initial details by President Yoon indicate the program will be a Japan-like effort to improve capital returns (dividends and buybacks) and corporate governance, particularly for stocks that trade below their underlying book....
FLKR: Korea Could Be This Year's Sleeper Hit As 'Value Up' Catalyst Looms