Korean Job Discussion Forums

[gay in korea]

http://english.chosun.com/site/data/html_dir/2010/01/22/2010012200511.html

that article is hardly anything new. Two Korean companies, Samsung Elec and Hyundai Motors, are leaders in their fields with growing reputations and records of success.

The Korean take on things is a little skewed, as can normally be expected. But there is a real issue as to why this undervaluing continues--- note, that a part of the recent surge has more to do with downward economic trends than anything else.

So is the reason that Korea is still viewed as 'less' than Japan? If so, why? How can this be fixed, assuming it can?

[air76]

A possible reason could be the North Korea issue...although most people consider the chance of war a non-issue, if things were to take a turn for the worse then Korean companies would see their value tumble. Maybe this risk (partially real but mostly perceived) is having a downward effect on the stock price.

The bottom line is, though, that if a stock is TRULY greatly undervalued then generally enough investors will buy the stock and bump up the price to where it should be. Of course, this doesn't ALWAYS happen, but it usually does. So, just because one article says that a stock is undervalued doesn't necessarily mean that it is.

[bassexpander]

Korean business practices are hurting the country in this area.

From beef riots to government-encouraged protectionism to Chaebols, Korea's own system is its downfall.

[Pink Freud]

Because for years, these two companies produced low-end products.

Remember the Hyundai Pony? They actually sold well in Canada until everyone who owned one realized they had a crapbox.

If you bring up buying a Hyundai to anyone who had experience with the early Sonatas and Elantras, you are likely to be laughed at.

They'll need a few more years to shed this reputation.

[BoholDiver]

I was thinking that too. Korea has not socially developed yet.

[itaewonguy]

because JAPAN invented the electronics business!
korea came later.. no one cares now who makes electronics.. they just remembered JAPAN ,made everything which started the whole thing..
even though samsung or Lg might be leading now.. peoples minds still think JAPAN when it comes to electronics..
consumers just buy them now and don't really think much about it compared to the late 80's or early 90's.. when it was JAPANESE this, JAPANESE that! koreans didnt really come onto the scene until the late 90's..

Koreans are more famous for the country which eat Dogs!

[sharkey]

[pkang0202]

I'm going to throw an idea out there. Get ready...


They undervalue it so they can make more money.


I know that making money is a radical concept for businesses, but hear me out. I think someone in Samsung realized they could make more money by doing what they do. Sounds crazy I know. I mean, what kind of company would WANT to make money?

[Sadebugo1]

[gay in korea]

[Konglishman]

[Cerberus]

for years, Huyndai and Kia were synonymous in the US at least with crap like the Yugo.

as their cars get better (witness sucesss of the Genesis) this perception will change. Won't happen overnight though.

They're still known for having crappy underpowered engines.... e.g.. Genesis.

Samsung and LG have been making quality products recently and growing in market share, with time these brand names will reflect their quality and their market share.. but once again, not overnight.

what I get a kick out of is how they're able to engage in cuththroat pricing in overseas market in order to grab market share.. while screwing their Korean consumers on local price whenever possible.

[PeterDragon]

There was a time when Japan was known as a place that made silly low end crap.

Then is was known as a place that made "undervalued" products.

Eventually, it became more respected as "top of the line".

As long as Korea keeps managing to make good products and improve their lines of electronics, cars, etc..., and as long as they continue to make their business practices more reputable and globally friendly (this aspect certainly still needs teeaking), they'll eventually get to where Japan is.

Korean cars are actually doing VERY well in the American market right now, because the recession is making people want cars about as fuel efficient as Japanese ones, but cheaper. I'm guessing a number of Americans will grow to appreciate the Korean cars they have to "settle for", and Korea will move up just a little on the "value" scale.

Best car I ever owned was my Matiz in Korea, BTW.

[kbit]

the "korea discount" has nothing to do with product quality, but reflects the poor corporate governance over chaebol affiliate companies. the problem is that chaebols can have controlling stakes in companies while only having minority ownership, often through messy cross-ownership webs. because of the risk of expropriation between affiliate companies investors price these stocks at a discount.

[madoka]