Seoul discusses conditions for South Korea’s sustainable investment appeal
In Seoul, South Korea, representatives of government, business and international investors at The Korea Herald 2026 HIT Forum discussed how to turn the country’s stock market growth into long-term investment appeal. Participants focused on corporate governance, shareholder protection, regulatory predictability and the country’s industrial advantages.
As The Korea Herald reports, the discussion took place after significant growth in South Korea’s stock market, which was followed by a correction. The volatility once again drew attention to major semiconductor manufacturers, which largely drove the rally. Forum participants discussed whether this growth is another phase of the semiconductor cycle or the beginning of a structural revaluation of the market.
Governance and investor protection
Prime Minister Han Seong-suk said in a video address that the government intends to strengthen investor protection and confidence in the market. She mentioned amendments to the Commercial Act and measures against stock manipulation. Seoul Mayor Oh Se-hoon stressed that competitive companies need a capital market that will more effectively connect them with investors, financing and talent.
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Jeong Eun-bo, chairman and CEO of the Korea Exchange, said the country should move from its prolonged struggle with the so-called Korean discount to building a sustainable premium. According to him, this requires a reliable market environment in which Korean companies receive appropriate valuations and global investors can participate in the market more easily.
The role of semiconductors
Lee In-hyeong, vice president of the Korea Capital Market Institute, noted that investors are willing to pay a premium when they are confident that company profits will ultimately reach them. He linked the valuation gap of Korean companies to corporate governance problems, while noting increases in dividends, share buybacks and share cancellations following recent reforms.
Lee cautioned that it is still too early to speak of a structural revaluation of the broader market, as semiconductors played a key role in its growth. Nomura economist Park Jeong-woo suggested that the favorable cycle in the industry could continue because of the difficulty of rapidly expanding chip production. Societe Generale representative Frank Benzimra named batteries, shipbuilding, industrial machinery and nuclear energy among South Korea’s advantages. Morgan Stanley strategist Jun Seok stressed the importance of consistency in government policy, corporate actions and capital management.
