Don't invest in Korea – here's why

Korean shares tend to trade at lower valuations than their peers in other Asian markets. But Korea is cheap for a reason. Cris Sholto Heaton examines the truth behind the 'Korean Discount', and explains why it makes sense to steer clear for now.

If a bank asked police to investigate the head of its holding group for embezzlement and breach of trust, it would be a major shock in most markets.

But in Korea last week, this news knocked just 5% off banking group Shinhan Financial's shares. And most analysts brushed off concerns over any long-term consequences for the firm.

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.