Korea Fund: How To Invest In The Korean Stock Market As It's Poised To Rise In 2023

Summary

• This closed-end fund trades at a large discount of circa 15%, has an acceptable expense ratio, and has performed a little better than its benchmark over the last decade.
• Korean stocks are amongst the world’s cheapest based on forward P/E ratio. Emerging markets, in general, are also historically relatively cheap and primed to attract global interest now.
• Shareholder activism trends can ensure that such potential will not result in a “value trap” investment here.
• Another positive catalyst is likely from China’s recent move to ease Covid restrictions. China’s previous restrictions were a factor, making Korean equities one of the worst stock markets in 2022.

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Korea fund history and past performance

The Korea Fund (NYSE:KF) history goes back decades; however, it has been a long time since it could be regarded as successful. The since-inception returns figures are boosted from higher returns achieved way back

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in KF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.