The MSCI Korea Index has consistently outperformed global markets. What is driving the continued rise of Korean stocks?

In 2025, the MSCI Korea index surged 92.4% for the entire year, and in the first four months of this year, it gained another 66.5%, far outpacing US, Japanese, and ** stocks. $iShares MSCI South Korea ETF (EWY.US)$

For a long time, 69% of companies in the KOSPI had a P/B ratio below 1x, with ROE consistently ranking at the bottom globally. The driver behind this revaluation has been a government-led corporate governance reform in Korea—between 2025 and 2026, a series of bills mandating the cancellation of treasury shares, dividend tax reforms, and expanded fiduciary duties for directors were implemented in quick succession.

This is not a short-term spike but the beginning of a structural change.

In this edition of Alpha Call, Futu Private Wealth team, in collaboration with Wincent Investment, will present an in-depth study and share experiences on the Korean market.

📌 Core Topics

• The MSCI Korea valuation remains one-fourth that of the S&P 500. How much room for revaluation is left?

• A detailed analysis of six corporate governance bills: which have been implemented and which are still in progress?

• Three key areas of benefit: banking, holding companies, and brokerage firms.

🎙️ Guest Speaker for This Edition

Michael Yong-Haron, CFA | Founder and Executive Chairman of WinShan Investment Limited

Clarence Yeung | Executive Director of WinShine Investment Limited

Freya Sun, CFA/FRM | Senior Industry Analyst, Futu Institutional and Private Wealth Team

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