Since the start of President Lee Jae-Myung’s term, the MSCI Korea Index has risen 48% year-to-date through September 30, marking it as the leading performer among major Asian indices. This increase is attributed to renewed investor confidence following the administration's reform agenda and a pledge to achieve “KOSPI 5000.” Early government actions have included reviving the Value-Up initiative and tightening governance rules.
Despite these developments, some caution remains about relying solely on political targets for market performance. According to Amay Hattangadi, Portfolio Manager of the Emerging Markets Equity Team, and Rose Kim, Executive Director of the same team: “The country’s trump card remains its structural strengths in technology, artificial intelligence and new energy supply chains that anchor its long-term growth story. While Value-Up laid the foundation, and AI has driven the rally, optimism that policy alone will erase the so-called ‘Korea discount’ may be running ahead of actual progress. In our view, the direction of reform is encouraging and long overdue, but the rally is more than mere political rhetoric, rooted in the strength of strategically resilient sectors and companies.”
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