Challenges Facing Seoul's Initiative to End the Korean Discount
Wednesday, 24 July 2024, 00:00
Challenges in Ending the Korean Discount
The Korean discount refers to the persistent undervaluing of South Korean companies compared to their global peers. Recent restructuring efforts by the Doosan Group have highlighted significant shortcomings in corporate governance.
Key Concerns
- Lack of fiduciary duty: Critics argue that the absence of a clear fiduciary duty standard for shareholders hampers investor trust.
- Impact on market valuation: The inability to address these governance issues could lead to continued undervaluation of South Korean firms.
- Call for reforms: Stakeholders are urging the government to implement stronger regulatory measures to increase transparency.
In conclusion, without substantial reforms in fiduciary duties and corporate governance, South Korea's efforts to eliminate the Korean discount face major obstacles that could hinder the nation's overall market performance.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.