When Governance Becomes the Main Event
For years, investing in South Korea was about picking the biggest chaebol and hoping for the best. Now, the conversation has pivoted entirely to corporate governance. It’s no longer a box-ticking exercise for the annual report. It’s the main event. Investors, particularly the large international funds, are growing tired of the soap opera. They want transparency and predictability, not a dynastic power struggle.
This is where a potential "governance premium" comes into play. I suspect we’ll see a divergence in the market. On one side, you’ll have the chaebols mired in succession chaos. On the other, you’ll find professionally managed firms, like the financial powerhouses Shinhan Financial or KB Financial Group, which may start to command higher valuations. They offer exposure to Korea’s dynamic economy without the accompanying family baggage. Even a behemoth like SK Telecom has shown it’s possible to balance family influence with modern, professional oversight.