South Korea Could Up Dividend Payouts

South Korean equities continue to look cheap compared to Asian peers and fund managers are bullish. Does the possibility of reunification impact on their investment case?

David Brenchley 30 April, 2018 | 3:21PM

Korea unification, Kim Jong-un, Moon Jae-in, South Korea, North Korea, emerging markets

Friday marked the first time a North Korean leader had set foot across the Military Demarcation Line and into South Korea since the Korean War in 1953. The historic meeting between Kim Jong-un and Moon Jae-in culminated in an agreement from both sides to work to de-nuclearise the Korean Peninsula.

But what of the investment case for South Korea? The country’s stock market accounts for 15% of the MSCI Emerging Markets Index and 17.5% of the MSCI Asia Pacific ex Japan Index. Its largest constituent, Samsung Electronics (005930), is the second largest firm in both indices.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Dimensional Emerging Mkts Core Eq Acc45.73 GBP-0.94
Hyundai Motor Co98,300.00 KRW0.00
Invesco Asian UK Z Acc443.27 GBP-0.91
iShares Pacific ex Jpn Eq Idx (UK) D Acc334.52 GBP-0.79
JOHCM Global Emerging Mkts Opps GBP A1.33 GBP-1.03
Jupiter Asian I Acc968.41 GBP-1.32
Lotte Chemical Corp167,500.00 KRW0.00
Mirae Asset Asia Sect Ldr Eq R GBP Cap10.10 GBP-0.68
Robeco Emerging Stars Equities F £159.44 GBP-0.64
Samsung Electronics Co Ltd52,700.00 KRW0.00
Shinhan Financial Group Co Ltd29,000.00 KRW0.00
SK Hynix Inc82,800.00 KRW0.00

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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