Issue 45: Korea Inc Errs On Side Of Caution

27 November 2025

Korea Inc has more than weathered Trump’s trade tariff war and domestic political uncertainty. Average return on equity has continued to improve as nimble, cost competitive Korean companies have reined in costs and reduced prices to retain overseas customers. Trading Post expects the investment downcycle to reverse in coming quarters as firms get more confident about the future. In the meantime, capital remains appropriately priced for where Korea is in the business cycle, even with the central bank likely to stay on hold through the rest of 2025 and into 1Q26.