Posted 3/3/2024, 9:00:00 PM
South Korea struggles to boost stock market as chaebols benefit from low valuations
- The Kospi stock index in South Korea is down 1.03% this year, while Japan's Nikkei index is up 19.89%
- Experts say South Korea's large business conglomerates, known as chaebols, benefit from low share prices due to the high inheritance tax
- South Korea's financial regulator announced a new plan on Feb. 26th to boost the stock market, but it disappointed investors
- The plan did not address the "Korea discount" phenomenon of relatively low stock valuations
- The high inheritance tax gives chaebols an incentive to keep stock prices low