Making a Korea change

The 59% rise in the Korea Composite index (Kospi) in US dollar terms in 2005 has naturally sparked a lot of interest in the Korean stock market, changes in the country's economy and the possible erosion of the so called Korea discount. South Korea has come a long way since the 1998 IMF crisis, which saw the debts of large conglomerates spiral out of control, leading to a collapse in the country's banking system and currency. Since then, Korean stocks have tended to trade at a steep discount to its Asian peers, with the Kospi rarely trading above 10 times earnings, despite the strong growt...