South Korean reforms unlock cheap equities
The guest argues that South Korea's market is highly attractive due to recent regulatory tailwinds and extremely low valuations on high-quality businesses.
The argument
Proposed tax reforms, including lower inheritance and dividend taxes, alongside English disclosure mandates, serve as key catalysts. The guest highlights NICE Information Service as a dominant credit-scoring toll-bridge business trading at a single-digit PE multiple, representing a significant discount to global peers.
The thesis, stress-tested
✓ What validates it
- ✓Official implementation of proposed inheritance and dividend tax cuts
- ✓Continued double-digit earnings growth at NICE Information Service
▸ Risks discussed
- ▸Complex corporate structures in South Korea
- ▸Lack of immediate market momentum or near-term catalysts
Hear it yourself
"So just incredible dispersion in outcomes at least at the index level in the continent or in the region of Asia. I I wanna start there. Why are we seeing such great dispersion in Asian stock returns right now? I have invested been investing in Asia now for almost twenty years. And and through that process, I've seen, you know, cycles come and go. And what's so good about the the geography is that it's a huge breadth of companies and regions is is huge in terms of the what you can invest in. So Asia Pacific is 4,000,000,000 people if you include The Middle East, and and, you know, includes countries like like India and China."
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