South Korea’s Corporate Governance Overhaul Sparks Market Transformation
South Korea’s stock market has surged to unprecedented levels amid sweeping corporate governance reforms. Regulatory changes are shifting power from dominant families to minority investors, with hundreds of companies already responding to the “value-up” initiative.
Market Performance Reaches Historic Highs
South Korea’s stock market has reportedly achieved record-breaking performance in 2025, with the KOSPI 200 index surging by 69% in local currency terms, according to market analysis. This dramatic upturn significantly outpaces the 15% gain recorded by America’s S&P 500 during the same period. Sources indicate that while artificial-intelligence enthusiasm has benefited major chipmakers like Samsung Electronics and SK Hynix, the primary driver appears to be a government-backed campaign to improve corporate governance and eliminate the longstanding “Korea discount” on stock valuations.