While they are a huge contributor to the country’s GDP, the complex shareholding structure of chaebols mean that investors hold little sway over the company’s strategic direction. The four conglomerates mentioned above make up about 40% of South Korea’s GDP, according to South Korean media. Market reforms could receive a setback due to the political turmoil, said Lorraine Tan, director of equity research for Asia at Morningstar, while adding that the reforms will not be “derailed.” “I think the longer the leadership change takes, the more likely investors will be sidelined. President Yoon is unpopular and a peaceful transition away from his leadership would help,” she pointed out. The embattled Yoon has survived an impeachment vote over the weekend after members of his ruling People’s Power Party walked out of the country’s parliament, but opposition parties have vowed to continue efforts to impeach him. Jeff Ng, Head of Asia Macro Strategy at Sumitomo Mitsui Banking Corporation said that the “Korea discount” is still likely to persist into 2025 due to weak economic conditions, slower exports, and a weak Korean won. “Investor confidence may return in the medium-term, but a swift resolution of the domestic uncertainty looks unlikely at this stage.”