Zhao Youdao: Grasshopper Asset Management Company: Investors Need a Higher Risk Premium to Invest in Korean Assets
Global investors have consistently valued South Korea lower than other markets, due to reasons including the tense relationship with North Korea and the tight structure of South Korean conglomerates. This week’s political situation gives them reason to further underestimate South Korea. For investors, the martial law events remind them of why the South Korean stock market and the won have lagged behind global markets for months. Daniel Tan, portfolio manager at Grasshopper Asset Management in Singapore, stated: “In the long run, the martial law event will exacerbate the 'Korean discount', meaning that the risk premium for trading South Korea-related assets, stocks, foreign exchange, and bonds will increase. Investors need a higher risk premium to invest in the won and the South Korean stock market. #bnb创历史新高