South Korea has one of the largest economies in Asia, even though it has only a fraction of the population compared to countries like China, or even Indonesia.
That’s because South Korea is home to some of the most noteworthy companies in the world. Samsung Electronics is the world’s largest technology company by revenue.
And automobile companies like Hyundai and Kia also call South Korea home. With companies like this, it’s no wonder that South Korea is attracting a ton of foreign investment.
If you’re looking to diversify your investment strategy to incorporate major companies across the globe then consider South Korea. The South Korea Stock Market is booming.
Keep reading below to learn how you can start investing in South Korea, for a stronger, more diversified portfolio.
Invest in South Korea Stocks
Looking to make an investment in South Korea? Then you need to know about some of the major players in the Korean market.
More than half of all goods produced in Korea are exported. It has one of the highest export rates of any nation.
The biggest companies in South Korea are technology manufacturers, automobile manufacturers, and steel manufacturers.
We already know that Samsung, the biggest company in South Korea, is on the list. But LG isn’t far behind. More specifically, LG Chem is the nation’s largest chemical company. They produce car batteries and sell them to some of the biggest car companies worldwide, such as GM.
Hyundai Motors is the 5th biggest car company in the world and the second biggest company in South Korea. A subsidiary, Hyundai Mobis, sells automobile parts to customers like Kia, Subaru, Mitsubishi, and GM.
And if you want to take a hint from Warren Buffet, you can invest in Posco, the 4th largest steel manufacturer in the world, backed by the famous investor himself. Berkshire Hathaway owns about 5% of the companies shares.
A Guide to Making an Investment in South Korea
So how do non-Korean investors participate in the Korean market? One way is by investing in Exchange Traded Funds (ETFs). A handful of Korean ETFs is available on the US stock exchange. The iShares MSCI South Korea Index Fund (EWY) is a popular option.
Other ETFs are available that focus on the Asia-Pacific region as a whole, containing some shares of South Korean companies, and shares from companies across the Pacific, like Japan and Taiwan.
Want more flexibility when choosing South Korean stocks? You can invest directly with the South Korean stock exchange if you use the right platform. You can get access here to a brokerage that focuses on global diversification.
Not only will this platform let you invest in South Korea, but it also gives you instant access to companies across Asia, such as Japan, Taiwan, Singapore, Indonesia, and others.
Success With Foreign Investment
Whether you live in the US, Europe, Australia, or elsewhere, diversifying outside your home country is very important. There are many times when your local market will be down across the board, but other nations of the world will remain largely unaffected.
Focus on foreign investment by choosing a handful of other nations you want to invest in, and add those to your portfolio right away.
Looking for more finance tips? Keep tabs on our blog!
Ronald is a business editor who writes about various topics such as technology, health and finance. He works along with the colourful folks that build a nation through tech startups. He is also a professional football player and video games enthusiast.