South Korean Stocks Could Break Free From Bargain Hunters
- Rising profits could trigger Kospi to escape ‘value trap’: Huh
- Kospi valued at world’s cheapest in more than a decade
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South Korean equities, stuck near the lowest level versus the world since the 2008 global financial crisis, are ready to break free with the second-highest earnings growth prospects in Asia, according to Huh Nam-Kwon of Shinyoung Investment Management Co.
“The Kospi index is like a baby elephant, tied for years and never trying to set itself free,” said Huh, the chief investment officer who has worked as a value-stock fund manager in Seoul for 30 years and now runs a $5.2 billion fund. “But it can escape from the value trap when there is a trigger. Conditions for the Kospi to break out from the trap are all ready.”