Money flows under the world's markets to the hottest shares of South Korea

South Korean stocks, which are already the best achievement among the most important global markets this year, have become an attraction to foreign investors with the increasing momentum of daring regulatory reforms to increase judgments and empower minority shareholders. This month, in particular, policymakers voted in favor of fundamental legal changes that make members of the directors of directors legally responsible for all shareholders. They now focus on the next wave of reforms, including improvements on the voting system to choose members of the Board of Directors and reduce Treasury shares, all for the purpose of combating many family blocks in the country, or known as Chaebols. These reforms drew the attention of investors, from Wall Street to London. Foreign boxes, who got rid of Korean shares nine consecutive months to April, return to the market. Among those who have increased the Korea rankings since the beginning of June are streets in World Banks, including “Goldman Sachs”, “JP Morgan”, “City Group” and “Morgan Stanley”. The standard “Cosby” index increased by 33% in 2025, which helped the value of the stock market for the first time in three years to more than one trillion dollars. Jonathan Pines of “Federm Hermes”, the Asian equity fund, with the exception of Japan, worth $ 4.5 billion, exceeding more than 92% of its peers in one year, said the reforms “will contribute to the continued cultural transformation that will already reduce the ability of the controlled shareholders.” He added: “We are still investing significantly in Korean shares.” The successful Japanese experience that the South Korean authorities are trying to repeat to repeat the success achieved by Japan, as the push to businesses reforms the improvement of assessments and stimulates the recovery of stocks to perform better than world markets. Optimism has increased the state seriously in addressing the SO calls ‘low Korean evaluation’ since newly elected president Lee Jay Meong has increased the criteria for management and improved the returns of the stock market at the top of its priorities. The net flow of foreign boxes exceeded $ 3 billion in July, exceeding total purchases in the previous two months. Joshua Krab, head of the Department of Asia -Pacific at Rubico Hong Kong Limited, said: ‘We see a major change in corporate governance’, and points to more capitalist discipline, repurchase and profit distribution. He added: “It doesn’t require a favorable world environment. These are matters that depend on a lot of self.” After discussing the final round of the amendments to the business law earlier this month, legislators intend to vote on August 4. During this tour, they will impose a cumulative voting system on listed companies in an effort to improve the diversity of boards. The cumulative voice became a cornerstone of the agenda of corporate governance of the ruling Democratic Party. In this system, the shareholder usually gets votes equal to the number of shares it owns, multiplied by the number of seats in the Board of Directors. This system will enable the minority shareholders to raise votes and choose a member of the Board of Directors who are at least compatible with their interests, such as asking for more shares or profit distribution operations. Another proposal to consider in this tour is to make a maximum for the number of members of the audit committee that senior shareholders can nominate. In addition, Treasury shares are a matter of Treasury shares that have become the focus of controversy in South Korea. Companies can convert these stocks to friendly bodies, such as family members or subsidiaries, which can then vote to give the dominant family more power without increasing the actual property. Although the proposal to cancel the Treasury shares is not a direct part of the agenda of this round of business law, it remains the focus of the main focus of the Korean president and its allies in their attempt to achieve their ambitious goal of “Cosby 5000”. The proposal was badly opposed to economic blocks. Li Han Joe, one of my senior assistants and head of the State Affairs Planning Committee, told him in a recent interview that the proposal should be gradually applied “to avoid instability.” “At least companies can try to maintain the current Treasury shares while agreed to cancel the shares they acquire in the future.” This will disappoint the market hope. “The options of the lawmakers discuss different options in this regard, according to a person familiar with the matter. This person, who asked not to reveal his identity due to the fact that the negotiations continue, that the options vary from a similar model for the German model, to a more strict approach that requires the Treasury shares to get rid of.