Korea discount

The Korea discount is the phenomenon in South Korea where companies listed on the Korea Exchange are valued lower compared to their global counterparts due to various factors. Factors include poor corporate governance and tensions with North Korea.

History

During his tenure, President Yoon Suk Yeol promised to alleviate the Korea discount. However, his 2025 declaration of martial law was seen as excaberating the factors related to the phenomenon.
In June 2025, during the tenure of President Lee Jae Myung, the National Assembly twice amended the Commercial Act, which regulates public companies, so that company managers now have fiduciary duty to shareholders rather than just the companies alone. This meant a change of power from the families that dominate companies towards minority investors. The law also mandates electronic shareholder meetings and changes voting procedures.
In early 2026, two major Coupang investors sued South Korean government for damages, citing Coupang stock losing 27% as the direct results of comparing the company with mafia - this resulted in U.S. Trade Commission escalation and can contribute towards the "Korea discount" sentiment.