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Korea Continues to Be the Most Attractive Market in Asia

Watch the video with Andrew Stotz or read a summary of the country profile on Korea.

Four Pillars of GDP: Mainly driven by private consumption

Korea’s GDP grows at relatively pace. Private consumption and investments have been the main contributors to GDP growth, while net exports have been a big drag.

Massive earnings growth expected in Korea in 2017

Analysts’ estimates for 2017CE* EPS growth are way above the Asian average, at 51%. Looking at valuation, we can see that the “Korea discount” remains, though.

#Korea continues to be the most attractive #market in Asia

A. Stotz Four Elements: Korea’s rank relative to Asia

Overall, Korea is the most attractive in Asia considering all our four elements: Fundamentals, Valuation, Momentum, and Risk.

Fundamentals: Poor due to relatively low profitability in terms of ROE.

Valuation: The “Korea discount” remains, cheapest in Asia.

Momentum: Massive earnings growth and good price momentum.

Risk: High volatility and high beta to Asia ex Japan.


Korean Energy saw a massive price gain in 3Q17

Top 3 largest sectors: Information Technology: 36% of the market; Consumer Discretionary: 12%; Industrials: 12%.

Best sector & stock: Energy: +21.9% & S-Oil Corp: +34.5%.

Worst sector & stock: Consumer Staples: -9.6% & It’s Hanbul Co Ltd: -35.2%.



*CE is consensus estimates

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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.