According to LS Securities on July 21, South Korea's capital markets face structural valuation gaps compared to Taiwan despite similar economic structures. Taiwan holds 27.5% weight in MSCI Emerging Markets (IMI) index versus South Korea's 22.6%, reflecting Taiwan's two-decade corporate governance reforms.
In this year's MSCI market accessibility assessment, South Korea improved only one of 18 evaluation criteria, with five rated 'adequate+' and five rated 'inadequate-'. South Korea's government is rolling out policy measures including restrictions on cross-listing, low price-to-book ratio improvements, and Kosdaq market restructuring to align with MSCI evaluation standards and attract foreign institutional capital.