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[BARRON'S] Why South Korean Stocks Are a Buy in 2016

December 31, 2015
South Korea's main bourse closed 5 points down at 1,961.31 on Dec. 30, 2015, the last trading day of the year. South Korea's stock market gained 2.39 percent compared to the end of 2014, while the secondary market KOSDAQ leaped 25.67 percent over the year. (Yonhap)

South Korea’s main bourse closed 5 points down at 1,961.31 on Dec. 30, 2015, the last trading day of the year. South Korea’s stock market gained 2.39 percent compared to the end of 2014, while the secondary market KOSDAQ leaped 25.67 percent over the year. (Yonhap)

[BARRON'S] South Korea’s stock market may be overshadowed by its North Asian neighbors China and Japan, but the combination of cheap valuations, improving earnings and the embrace of more shareholder friendly policies means it should be on the shopping list of bargain hunting investors in 2016.

It’s been a bumpy ride for the KOSPI Index in 2015, with investors looking at a flat finish to the year after the benchmark rallied nearly 14% from the start of the year to a peak of roughly 2,170 points in late April, before tumbling 16% to a low of around 1,830 points in August. But veteran investors like Petra Capital Management co-founder Chan H. Lee argues 2016 may be a year of opportunity as corporate governance reforms prod companies to deliver more value to investors.

On valuations alone, South Korean stocks look enticing. [READ MORE]

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  1. d--h.info

    January 1, 2016 at 9:53 AM

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