South Korean corporate reforms hit rough patch as Samsung digs in

South Korean conglomerates are struggling to implement corporate governance reforms, according to global investors. While some sectors have seen significant returns, the "Korea Discount" - the term used to describe South Korea's undervalued market - remains prevalent. Samsung Electronics, despite reporting the biggest quarterly operating profit by any technology company, trades at a paltry 1.87 times book value, making it a prime target for investors seeking better returns.

The conglomerate's board chairman recently met with overseas investors to discuss shareholder return policies, following complaints about the company's modest returns. Despite declaring a record 30 trillion won in dividends, Samsung has not yet decided how to deploy the remaining 55 trillion won earmarked for shareholder returns.

This contrasts with rival SK Hynix, which announced a $75 billion shareholder return package last month. Critics argue that large, state-owned conglomerates are resisting reforms and using treasury share cancellation as a defense against takeovers.