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
Facebook Twitter LinkedIn

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.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Dimensional Emerging Mkts Core Eq Acc56.49 GBP0.39Rating
Hyundai Motor Co208,500.00 KRW0.00
Invesco Asian UK Z Acc543.81 GBP0.26Rating
iShares Pacific ex Jpn Eq Idx (UK) D Acc428.85 GBP1.10Rating
JOHCM Global Emerging Mkts Opps GBP A1.49 GBP0.75Rating
Jupiter Asian I Acc1,113.24 GBP0.73Rating
Lotte Chemical Corp244,000.00 KRW0.00
Mirae Asset Asia Sect Ldr Eq R GBP Cap13.24 GBP0.69Rating
Robeco Emerging Stars Equities F £187.02 GBP0.37Rating
Samsung Electronics Co Ltd70,100.00 KRW0.00Rating
Shinhan Financial Group Co Ltd39,000.00 KRW0.00Rating
SK Hynix Inc98,400.00 KRW0.00Rating

About Author

David Brenchley

David Brenchley  is a Reporter for