Korea ETF chart courtesy of Stockcharts.com
Buffett said, “The Korean stock market a few years ago was by far the most undervalued market in the world. Since then, there has been a huge advance in the Korean market and the won has appreciated against the dollar. Nevertheless, many Korean stocks still sell at more attractive prices than stocks in other major countries.”
Buffett’s view is quite a contrast to the market concern that Korean stocks may be “overvalued” with KOSPI having surpassed 2,000. In fact, in terms of PER (price earnings ratio), Korean market is still undervalued as Buffett argues. According to Thomson IBES, Korean stock market posted 12.3 PER, lower than the average of emerging markets (15.0) and the average of advanced markets (14.7).