South Korea’s Structural Reforms May Precipitate a Re-Rating

South Korea is undergoing a transformative shift, driven by the government’s “Value Up” reforms aimed at unlocking corporate value, improving governance and narrowing valuation discounts. These reforms, alongside the country’s re-industrialisation and cost advantages, are boosting its position as a critical supplier to industries such as power infrastructure, defence, shipbuilding and nuclear energy.

In the technology space, South Korea’s dominance in high-bandwidth memory and its role in the global AI supply chain offer sustained earnings visibility and pricing power for market leaders like Samsung and SK Hynix. With valuations still significantly below regional peers, the convergence of reforms, export momentum and technological primacy could drive a long-overdue market re-rating for select Korean equities.