Group 1 - The Korea Composite Stock Price Index (Kospi) has increased by 70% year to date, significantly outperforming the S&P 500 by over 50 percentage points [3][4] - The iShares MSCI South Korea ETF (NYSEMKT: EWY), which tracks large- and mid-cap stocks in South Korea, has surged by 88% this year [3][4] - The rise in South Korea's stock market is partly attributed to advancements in AI, particularly benefiting tech stocks and chipmakers [4] Group 2 - Newly elected President Lee Jae Myung aims to eliminate the "Korea discount" by implementing new shareholder protections and lowering capital gains tax thresholds, which is attracting investor interest [5] - Foreign investors are now net buyers of Korean stocks, indicating increased confidence in the market [8]

Group 1: Market Performance - South Korea's stock market is experiencing significant growth, with the Korea Composite Stock Price Index (Kospi) up 48% year to date, outperforming major indices like the S&P 500, which is up about 15% [5] - The iShares MSCI South Korea ETF has climbed 64% year to date, indicating strong performance among large and mid-cap stocks in the Korean market [4] - The Kospi is currently around 3,550, with a target set by President Lee Jae Myung to push it past 5,000 during his term [3] Group 2: Investment Opportunities - There is increased interest from global investors in Korean companies, with overseas investors making $11.5 billion in stock purchases since May, significantly above historical averages [1] - Korean stocks are considered undervalued, with a trailing-12-month price-to-earnings ratio of about 16.5 compared to the S&P 500's ratio of around 28 [8] - The iShares MSCI South Korea ETF is highly diversified, holding 82 stocks with no single company outside the top two accounting for more than 5% of the fund [5] Group 3: Government Initiatives - President Lee has committed to ending the "Korea discount" by implementing new shareholder protections and lowering capital gains tax thresholds [2] - Improving corporate governance standards and stock market returns are top priorities for the government, which is expected to boost investor confidence [3] - A recent trade deal with the U.S. aims to lower tariffs on South Korean goods to 15%, which could positively impact the economy and stock market [6]