Week in review
- U.S. Consumer Confidence rose to 91.2 in February
- Japan retail sales rose 1.8% y/y in January
- Bank of Korea kept policy rates at 2.50%
Week ahead
- U.S. labour market report
- China two sessions
- Australia 4Q GDP growth
Thought of the week
The third amendment to the Commercial Act was approved by the Korea's National Assembly last week. Listed companies are now mandated to permanently cancel repurchased shares, rather than retain them for potential reissuance. Newly-acquired treasury shares must also be cancelled within one year, with a six-month grace period for existing holdings. With this legislation, an approximate of USD40 billion could be unlocked in treasury share cancellations, primarily concentrated in financials, consumer discretionary, and holding companies. This reform continues to directly addresses the longstanding "Korea discount" by limiting controlling shareholders' ability to dilute minority interests, signaling sustained policy commitment to shareholder-friendly governance under President Lee's administration. That said, with the market having rallied 48% year-to-date on consensus AI optimism, elevated earnings expectations and concentration could mean market volatility ahead should corporate fundamentals disappoint. Nevertheless, the structural reform narrative remain constructive and improving corporate governance standards should provide support for Korean equities over the longer-term horizon.
KOSPI and the Korea Value-Up Index
Price, rebased to 100

Source: FactSet, J.P. Morgan Asset Management. Data reflect most recently available as of 27/2/26.
Market data

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All returns in local currency unless stated otherwise.
Currencies’ return are based on foreign currencies per U.S. dollar. An appreciation of the foreign currency against the U.S. dollar would be positive and a depreciation of the foreign currency against the U.S. dollar would be negative.
