Top 10 Stocks in Korea With Highest Net Cash as Percentage of Market Cap

• One of the emerging trends in the Korean equity markets in the past several weeks has been the shift out of high beta, high P/E stocks to deep value stocks.

• In this insight, we will discuss about the top 10 stocks in Korea with highest net cash as percentage of market cap.

One of the clear emerging trends in the Korean equity markets in the past several weeks has been the shift out of high beta, high P/E multiple stocks (especially among the rechargeable battery names) to deep value, low P/B, high dividend yield, high net cash as percentage of market cap related stocks. There are numerous reasons for this among which the overall weaker equity market environment and the need to protect investment capital which is often better served by the deep value related stocks.

There has also been an important catalyst of the Korean government's willingness to raise higher value on these low P/B related stocks, including potentially increasing the number of ETFs related to these low P/B related Korean stocks to encourage global institutional passive investors to increase their capital allocation to these deep value stocks.