Home > Business > Economy

Korea a good place to go AI bargain hunting, says JP Morgan executive

Published: 15 Oct. 2025, 19:02

JP Morgan Asset Management hosts the APEC Media Summit in Yeouido, western Seoul, on Oct. 14. [JP MORGAN ASSET MANAGEMENT]

Korean tech giants Samsung Electronics and SK hynix lead the global AI race but trade at roughly half the valuation of their U.S. rival Micron Technology, a senior executive at JP Morgan Asset Management said Tuesday.

Anuj Arora, head of emerging markets and Asia Pacific equities at JP Morgan Asset Management, said Korea offers a good opportunity to invest in AI companies at a 50 percent discount, citing the high entry barriers in the semiconductor supply chain.

Arora said Korea is poised to become Asia’s next success story in stock market revitalization after Japan. He noted that the Korean market rose 65 percent following the introduction of the Value-up program last year and added that the government’s ongoing corporate governance reforms could further boost growth.

The Asia Media Summit marked the first time JP Morgan Asset Management hosted a media event alongside its annual Research Summit, which it usually holds in the United States, Europe or Asia for global financial institutions and investors.

"The choice of Korea as the host country shows the growing expectations for Korea in global financial markets,” said Park Nam-seok, head of JP Morgan Asset Management Korea. “Assets under management in Korea have more than doubled over the past five years. The global financial industry recognizes Korea’s rising status and investment value. The government’s stock market revitalization efforts have also drawn greater interest from overseas investors.”

Park noted that previous campaigns such as “Buy Korea” and efforts to resolve the “Korea discount” faded due to inconsistent policy support.

Park Nam-seok, CEO of JP Morgan Asset Management Korea, speaks during the APEC Media Summit in Yeouido, western Seoul, on Oct. 14. [JP MORGAN ASSET MANAGEMENT]

“Foreign investors no longer view inter-Korean relations as a major risk,” he said. “They are focusing more on corporate governance reform, and consistent market-friendly policies for at least a decade would help build confidence.”

JP Morgan Asset Management forecasts “softer growth” in the global economy in 2026. It expects the U.S. economy to slow moderately but avoid a recession.

Tai Hui, chief market strategist for Asia Pacific at JP Morgan Asset Management, said the four main risks for next year include tariffs, weaker U.S. macroeconomic indicators, heightened geopolitical tensions and uncertainty over AI’s potential. He noted, however, that the investment outlook remains positive as the U.S. economy continues to grow and the Federal Reserve moves to lower interest rates.

Hui identified semiconductors, defense, shipbuilding and finance as Korea’s most promising industries. He said defense and shipbuilding are set for long-term growth as demand rises in the United States and Europe, and noted that the semiconductor upturn is boosting financial transactions, benefiting banks and securities firms.

Hui advised investors to diversify their portfolios to mitigate policy uncertainty. He explained that gold carries risks similar to equities and does not consistently move opposite to stock markets, making it an unreliable hedge. He also noted that cryptocurrencies remain highly volatile and lack solid fundamentals, recommending that investors limit their exposure to amounts they can afford to lose.

George Gatch, CEO of JP Morgan Asset Management, said the firm is the world’s fastest-growing active exchange-traded fund manager. He noted that it currently oversees about $4 trillion in global assets and aims to increase its Asia-Pacific assets under management from $300 billion to $1 trillion by 2030.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KO SUK-HYUN [[email protected]]