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
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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 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 Morningstar.co.uk