South Korean corporate reforms hit rough patch as Samsung digs in

Global investors are pushing South Korea’s biggest conglomerates to accelerate corporate governance reforms, but progress has been uneven, with gains in financials offset by resistance among large chaebol affiliates, according to Reuters. Despite a rally this year, South Korea’s market remains among the world’s cheapest: the KOSPI is up 35% for the year even after a drawdown since summer, trading at about 3.85 times forward price-to-earnings versus 17.64 for the MSCI World. Around 70% of KOSPI stocks trade at or below book value, per LSEG. Samsung Electronics, despite record third-quarter operating profit for any technology company, trades at 1.87 times book value. Investors say resistance could stall President Lee Jae Myung’s push to eliminate the “Korea Discount,” fueling outflows. Samsung’s board chairman met overseas investors after complaints about shareholder returns.