South Korean Stock Market Risks Priced In, Says Causeway Capital

Arjun Jayaraman, portfolio manager at Causeway Capital Management, said risks around the South Korean stock market were now priced in. The value is certainly compelling there so we maintain our overweight position,' he told CNBC's 'Squawk Box Asia' last week. Following Yoon's imposition — and then revoking — of martial law late on Dec. 3, the South Korean Kospi stock market index fell around 5.5% before recouping most losses.

The recent political turmoil in South Korea looks set to be short-lived, according to fund manager Arjun Jayaraman, who said there are opportunities for investors in the country. The portfolio manager at U.S.-based investment firm Causeway Capital Management added that risks around the South Korean stock market were now priced in, following a failed attempt by President Yoon Suk Yeol to impose martial law in early December and his 'We think that Korea is obviously quite a cheap market. It's priced in a lot of negativity,' Jayaraman told CNBC's 'Squawk Box Asia' last week. 'The value is certainly compelling there, so we maintain our overweight position.' Yoon had strived to boost listed companies — and shareholder returns — via the 'Corporate Value Up' program, a Japan-style initiative designed to improve corporate governance and increase investor engagement. The reforms were also introduced to combat the so-called 'Korea discount,' a reference to South Korean securities trading at lower valuations relative to regional peers, due to investor concerns over issues such as corporate governance at large family-owned conglomerates.But Jayaraman said that any new South Korean government would likely continue to push these reforms, bolstering returns. 'We do take heart in the fact that even the more left-leaning Democratic seems to be supportive of the Value Up initiative in Korea, which should lead to a re-rating of the market, over the medium to long term,' he note

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South Korean Market Seen As 'Compelling Value' by Causeway CapitalArjun Jayaraman, portfolio manager at Causeway Capital Management, believes risks around the South Korean stock market are now priced in and sees opportunities for investors. He states that the market is 'cheap' and 'priced in a lot of negativity' following recent political turmoil.
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South Korean Stock Market Seen as Attractive by Causeway CapitalArjun Jayaraman, a portfolio manager at Causeway Capital Management, believes that risks associated with the South Korean stock market are now reflected in its price, making it an attractive investment opportunity. Jayaraman points to President Yoon Suk Yeol's recent attempt to impose martial law and its subsequent revocation as a short-lived political turmoil, stating that the market has already priced in the negativity surrounding the incident. He also highlights the government's 'Corporate Value Up' program aimed at improving corporate governance and combating the 'Korea discount,' which he believes will lead to a market re-rating in the medium to long term.
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