What's next after Korea's market rally?

Korea's stock market has enjoyed significant gains, but sustaining this rally may prove challenging. For global investors at Korea Premium Week 2026, turning the rally into a lasting rerating will necessitate deeper reforms in corporate governance, shareholder returns, taxation, and transparent market rules, according to attendees.

Frank Carroll, managing director at Oaktree Capital, cautioned regulators against erratic interventions during market volatility, emphasizing that consistent policy will be vital to preserving foreign investor confidence. Carroll forecasted an imminent market correction, likely triggered by the United States, and advised investors not to panic, urging them to remain committed to their strategy.

He cited Korea's past short-selling bans as an illustrative example of interventions that could erode market confidence. Carroll staunchly opposed short-selling bans, asserting that an open, free market should allow for selling stocks during downturns. He also urged policymakers to adopt consistency over abrupt actions.