Key facts
- Samsung Electronics trades at 1.87 times book value, against 7.8 for Micron, 29 for Nvidia and 44 for Apple, Reuters reported.
- About 70% of KOSPI stocks trade at or below book value, according to LSEG data cited by Reuters.
- The KOSPI is up 35% for the year and trades at a forward price-to-earnings ratio of about 3.85 times, versus 17.64 times for MSCI World.
- Samsung said chairman Shin Je-yoon regularly meets major global investors as part of shareholder engagement efforts.
- Capital Group, Artisan and Fidelity did not respond to requests for comment, Reuters said.
- Samsung Electronics and SK Hynix account for slightly more than half of the KOSPI's market capitalization.
Global investors are pressing South Korea's biggest conglomerates to speed up corporate governance reforms, saying progress has been uneven, with gains in financials offset by resistance among large chaebol affiliates, Reuters reported on November 6, 2026.
South Korea's market remains one of the world's cheapest despite a rally. The index is up 35% for the year even after a drawdown since the summer, and trades on a forward price-to-earnings ratio of about 3.85 times, compared with 17.64 times for MSCI World, Reuters reported. About 70% of KOSPI stocks trade at or below book value, according to LSEG data cited by the report.
Samsung Electronics illustrates the discount. It reported the biggest quarterly operating profit by any technology company in history in the third quarter, yet trades at 1.87 times book value, versus 7.8 for Micron, 29 for Nvidia and 44 for Apple, according to the report.
Samsung Electronics board chairman Shin Je-yoon met investors overseas before last month's earnings announcement, a person briefed on the matter told Reuters. The meeting followed complaints about the company's shareholder return policy from global investors including Capital Group, Artisan and Fidelity, the person said. Investors argued the returns were too modest and said they preferred share buybacks and cancellations to higher dividends, according to the person.
Samsung said in a statement that Shin regularly meets major global investors as part of its shareholder engagement efforts, and that it keeps an ongoing dialogue with key shareholders on shareholder returns and capital allocation. Capital Group, Artisan and Fidelity did not respond to requests for comment, Reuters said.
In August, Samsung declared a record 30 trillion won ($22.35 billion) in dividends but said it would decide in January how to deploy the remaining 55 trillion won to 75 trillion won earmarked for shareholder returns. Rival SK Hynix last month announced a $75 billion shareholder return package including dividends, share repurchases and cancellations. Together, Samsung Electronics and SK Hynix account for slightly more than half of the KOSPI's market capitalization.
A law that took effect in March made cancellation of treasury shares compulsory by September next year. A gauge of Korean bank shares is up 15.9% this year and insurers have gained 48%, compared with declines of 42% for shipbuilding and 30% for machinery, according to the report.