HSBC Investments discounts the Korean discount

Strength of won only major risk to recovery of undervalued market, says Kang Mijung
Kang Mijung, director of equities at HSBC Halbis Partners, says she remains bullish on Korea despite the recent re-emergence of the Korea discount.

The discount û which in recent years has resulted in a relatively low valuation of South Korean shares versus their Asian peers û has reappeared since the turn of the year. However Kang says this has been largely down to excessive expectations on the back of the market's 54% rise over the course of 2005.

Kang says The performance of the MSCI Korea Index last year was exceptional. This year Korea has become the biggest laggard in the region, with consensus estimates pointing to an annual 7% rise. But what that...
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