Korea Alpha Brief: May 04, 2026

Korea Alpha Brief | May 04, 2026 1. Governance Signal of the Week The governance premium is real, and it's widening. Our latest cross-sectional analysis reveals Korea's best-governed companies now trade at valuations 23% higher than peers — but here's what matters: the spread is rational, not speculative. Companies scoring 80+ on Daljayo's governance framework are demonstrating measurably superior capital allocation. They're returning cash, unwinding cross-holdings, and treating minority shareholders as owners, not tourists. The 59 companies in our universe that cleared the 80-point threshold represent a distinct investable subset of KOSPI — call it the "governance quality factor" finally emerging in Asia's most mispriced market. The F&B sector illustrates this bifurcation perfectly. Average governance score: 76/100. But that average masks a chasm. The top-quartile names are implementing genuine board independence and transparent disclosure around related-party transactions. The bottom quartile? Still treating IR as a compliance function and shareholder engagement...