It is easy to feel disheartened by the Korean equity market. It has underperformed other Asian equity markets over the last couple of years and for good reason.
Its export-driven economy is sensitive to the cyclical slowdown in the memory semiconductor sector ,which has negatively affected corporate earnings. It is not immune to slowing Chinese growth and the trade spat between the US and China given its exposure to manufacturing supply chains. On the domestic front, Korean government policy has not been market friendly and corporate governance generally is far from best in class. So, why are we overweight South Korea? As a contrarian investor focssed on long-term returns, I feel the best time to invest is when the market is unloved. From...
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