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Stock impact report

Investors were already wary of Korean stocks. Then the country descended into chaos [CNBC]

Mizuho Financial Group, Inc. Sponosred ADR (Japan) (MFG) 
US:NYSE Investor Relations: mizuho-fg.com/investors/index.html
Company Research Source: CNBC
Analysts that spoke to CNBC say that the efforts to oust Yoon might distract from and delay efforts for capital market reform, entrenching the “Korea discount” further. South Korean markets have had a dismal 2024, with the so-called “Korea discount” in its stock markets widening compared to other global peers. The recent political upheaval is expected to entrench this phenomenon. The country's benchmark stock index, Kospi, has lost over 7% this year and the underperformance of the South Korean market signals its “Corporate Value-Up” program, announced in February this year , has failed to address the “ Korea discount. ” The “Korea discount” refers to South Korean securities trading at lower valuations relative to regional peers due to investors' concerns over issues such as corporate governance at large family-owned conglomerates that have an outsized influence over the country's economy. The political turmoil in the country has further worsened investors' sentiment, with the Show less Read more
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