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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] As public interest in U.S. capital markets continues to grow, a recent survey revealed that the primary reason Korean investors prefer the U.S. market is the innovation of its companies.
According to a "Korea-U.S. Capital Market Perception Survey" conducted by the Korea Chamber of Commerce and Industry (KCCI) via its online platform "Sofl" on Sunday, 54.5% of the 1,505 respondents indicated a preference for the U.S. capital market over Korea’s, while only 23.1% favored the domestic market.
The most cited reason for investing in the U.S. was "corporate innovation and profitability" (27.2%), followed by "active shareholder returns" (21.3%), "domestic stock market stagnation" (17.5%), "U.S. economic boom" (15.4%), "transparent corporate governance" (14.8%), and "investor-friendly tax policies and government support" (3.8%).
A KCCI representative commented, "While recent corporate governance reforms in Korea, such as amendments to the Commercial Act to strengthen directors’ duty to protect shareholder interests, are often seen as the key to increasing corporate value, the survey shows that investors prioritize innovation and profitability in U.S. firms. Fewer respondents cited corporate governance as a primary reason for investing in the U.S."
The trend of Korean investors favoring U.S. stocks is expected to continue. When asked about their future investment plans, 79.0% expressed an intention to "increase" their investments in U.S. markets, 15.3% said they would "maintain" their current levels, and only 5.7% planned to "reduce" their U.S. investments. In contrast, for the Korean capital market, 54.3% intended to "increase" investments, 26.6% planned to "maintain" their current levels, while 19.1% expressed an intention to "reduce" investments.
Regarding the lack of growth in Korea’s capital market, 34.6% of respondents pointed to "stagnant corporate innovation" as the primary reason. Other concerns included "regulation-focused corporate and financial policies" (23.6%), "short-term investment culture" (17.5%), "weak corporate governance and shareholder returns" (15.4%), and "insufficient tax and policy support for financial investments" (6.8%).
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
