Signal Korean equities remain undervalued despite successive capital market reforms

Summary

The plan treats the capital market as a core platform for sustainable growth and argues that it must work efficiently and actively. It acknowledges that earlier governments pursued measures to modernise the market, including corporate value-up efforts, changes to short-selling rules and the abolition of foreign investor registration. Despite these steps, the plan observes that the undervaluation of Korean shares, widely known as the Korea discount, has persisted. It presents this persistent discount as the main reason why a more fundamental reform is required. The plan's response is a set of reforms organised around shareholder-oriented corporate culture, fair and transparent market order and a broader base of long-term demand.