Palliser Capital Highlights $60B+ Valuation Gap in Korean Preferred…

Event summary

Palliser Capital presented a $60B+ valuation opportunity in Korean preferred shares at the Sohn San Francisco Investment Conference on October 14, 2026.
Korean preferred shares trade at significant discounts (26% for Samsung, 48% for Hyundai) despite having similar economic rights to ordinary shares.
Palliser proposes preferred share repurchases, explicit discount targets, and governance protections to unlock trapped value.
Samsung and Hyundai are key targets, with Samsung’s shareholder return commitment and Hyundai’s acknowledgment of the discount issue.

The big picture

Palliser Capital’s analysis highlights a structural anomaly in Korea’s capital markets, where preferred shares trade at deep discounts despite governance reforms and improving corporate fundamentals. The $60B+ valuation gap presents a strategic opportunity for companies like Samsung and Hyundai to enhance capital efficiency and shareholder returns. The issue underscores the need for explicit governance measures to address trapped value in preferred shares, reinforcing the credibility of Korea’s ongoing market modernization efforts.

What we're watching

Governance Dynamics: Whether Samsung and Hyundai will incorporate explicit preferred share discount targets into their Value-Up plans.
Execution Risk: The pace at which Samsung and Hyundai act on Palliser’s proposals for preferred share repurchases and cancellations.
Market Impact: How broader Korean market reforms will influence the valuation gap between preferred and ordinary shares.