Korea’s Value-Up 2.0: Only Half the Story

Investor enthusiasm has been fueled by the administration’s reform agenda and the bold pledge to deliver “KOSPI 5000.” The government’s early actions, such as reviving the Value-Up initiative and tightening governance rules, have clearly restored confidence after a turbulent 2024. Yet history cautions against taking political index targets at face value. 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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