South Korea – a rebound candidate

16 May 2022

Franklin Templeton: South Korea – a rebound candidate

Contributors, Marcus Weyerer, Senior ETF Investment Strategist, Franklin Templeton ETFs EMEA

After a record year in 2020, Korean equities have been trending downwards, but it may be a candidate for a rebound.

Download PDF

Key Points
  • After a record year in 2020, Korean equities have been trending downwards
  • The FTSE Korea 30/18 Capped Index is trading 24% below its 2021 high, and has so far hardly recovered from its 2022 lows
  • With the war in Ukraine, a divisive election of a new president, and a new central bank governor to take over amid spiralling inflation, the situation remains challenging
  • However, in line with other select emerging markets, the fundamentals and outlook remain solid; a new government takes action; investor concerns are reflected in cheap valuations

IMPORTANT LEGAL INFORMATION

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice.

The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as at publication date and may change without notice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market. All investments involve risks, including possible loss of principal.

Data from third party sources may have been used in the preparation of this material and Franklin Templeton ("FT") has not independently verified, validated or audited such data. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments opinions and analyses in the material is at the sole discretion of the user.

Products, services and information may not be available in all jurisdictions and are offered outside the U.S. by other FT affiliates and/or their distributors as local laws and regulation permits. Please consult your own financial professional or Franklin Templeton institutional contact for further information on availability of products and services in your jurisdiction.

Issued by Franklin Templeton Investment Management Limited (FTIML). Registered office: Cannon Place, 78 Cannon Street, London EC4N 6HL. FTIML is authorised and regulated by the Financial Conduct Authority.

Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested.


Share this article